Virtus Talk with our team
Capabilities

Captives, large deductibles, and self-insurance.

Virtus helps you compare risk financing options using your loss experience, financial capacity, and business objectives. We evaluate the commitments involved and provide ongoing program management.

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Illustrative financing framework Options and evaluation factors

ALTERNATIVE RISK FINANCING

Compare how you finance risk.

Loss experienceFinancial capacityBusiness objectives

Approaches to consider

Compare with your current program
  • Group captives

    Participate with other businesses.

  • Single-parent captives

    An insurer owned by your business.

  • Large deductibles

    Retain more of each loss.

  • Self-insurance

    Fund specified losses directly.

EVALUATE THE COMMITMENT

Total costLoss volatilityCash flowProgram support

The right fit depends on your business and capacity to retain risk.

Financing options

Explore the approaches that fit your business

Different structures bring different funding commitments, responsibilities, and exposure to losses. We help you compare the options with your current program and understand what each would mean for your business.

Group captives

Participate with other businesses in a collectively owned insurance company, sharing some risk under the program's terms.

Single-parent captives

Use an insurance company owned by your business to finance its risks through a more customized arrangement.

Large-deductible programs

Retain more of each loss within an insurance program, with attention to claims obligations and collateral requirements.

Self-insurance

Fund specified losses directly, potentially pairing that retained risk with insurance protection against larger losses.

How we approach the decisions

Understand the total cost and potential volatility

We consider premiums, retained losses, program expenses, and the resources required to manage the arrangement. Looking beyond an average year helps your team understand how unfavorable loss outcomes could affect the business. We explain the assumptions behind the comparison and where uncertainty remains.

Assess the financial and operational commitment

Funding, collateral where applicable, cash flow, and the time horizon all deserve attention. We also consider the claims, risk control, data, and administrative support the approach requires, alongside your capacity and willingness to retain risk.

Support beyond the initial decision

Virtus provides ongoing program management, with involvement tailored to your arrangement and business needs. We help keep the program aligned with your objectives as your operations and risk profile change. We establish the scope of our role and how we work with the other specialists involved.

  • Program performance reviews and discussion of emerging issues
  • Claims coordination and risk control priorities
  • Review of funding and collateral needs with the relevant providers
  • Renewal planning and coordination with program specialists

Bring the right information into the discussion

Risk Analytics, Risk Control, and Claims Advocacy help connect the financing decision with the work behind your insurance program. We use exposure and loss information to inform the evaluation and identify operational priorities that support the approach over time.

What we recommend

Understand the tradeoffs before changing the structure

We explain which approaches warrant consideration, the assumptions behind the analysis, and the commitments involved. When your current program remains the better fit, we explain why and what changes might justify another look. The recommendation reflects your objectives and capacity to manage risk, alongside the potential financial benefits and costs.

Related capabilities

Related coverage and services

Considering a captive or retaining more risk?

Talk with our team about your loss experience, financial capacity, and the funding and administrative commitments of the options available.

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