Agency & Program

The primary motivation to create an agency captive is usually when a producer like you feels you’re getting a raw deal in terms of what your agency or you as the program owner get for placing your business with a commercial insurer. Commissions and any incentive agreements may fall short of covering your costs to produce a profit in return for providing your underwriting and transactional expertise not to mention your book of business’ better than average industry loss experience. Nearly two-thirds of the premiums collected by commercial insurers are generally used to fund loss payments, while the rest of the money covers their expenses and profits.  Captives by comparison have far fewer expense components than these insurers have. Combine this expense savings with the profits you’ll get to keep instead of the insurers you otherwise place your business with, and an agency captive becomes a no brainer.