Global re/insurance broker Willis Towers Watson (WTW) has launched a group captive solution for upper middle market companies, called the Homestead Insurance Company Incorporated Cell.
The new captive solution is set to reinsure The Hartford, which in turn will issue admitted insurance policies to members selected for this group program.
According to WTW, the program offers firms an improved and more cost-effective way to buy insurance protection over a five-to-10-year period. At the same time, the program removes the “peaks and valleys of the standard market” says WTW, providing members with full ownership of their underwriting profit otherwise retained by an insurer.
Homestead members stand to benefit through up-front premiums that should be competitive with traditional market programs, and long-term cost that will be much lower than traditional programs if members of the program maintain good loss experience.
Additionally, explains the broker, the new program will provide opportunities for further savings via dividends, greater impact and efficiency in handling of claims, and also increased control over all administrative decisions of the group program.
The new Homestead captive solution will also bring additional value by providing true insurance for adverse losses from The Hartford, and also by avoiding both the cost and time involved in either a single-parent captive or traditional group program.
Jim O’Connor, Head of Middle Market and Specialty Broking at WTW, said: “I’m thrilled to expand on our current middle market solutions with Homestead. Homestead is another valuable risk transfer option, in addition to our industry-specific Differentiated Broking Solutions strategy, that provides unique advantages to our beyond standard risk transfer.”
Mo Tooker, Head of Middle and Large Commercial at The Hartford, added: “We’re excited to partner with Willis Towers Watson on this captive solution. We understand the needs of midsize businesses and how critical it is to take a flexible and consistent approach in managing risk to create better economic outcomes for clients.”
While Joe Peiser, Global Head of Broking at WTW, said: “In today’s uncertain insurance market, companies need a thoughtful insurance strategy customized to their needs to effectively manage risk. Homestead will provide this strong, tailored strategy for our clients.”