IMD InsuranceFronting insurer
A licensed, rated carrier issues the policies and certificates, so your paper looks like it does today. Compliance and filings are unchanged.
Group captives
Group captives.Own your insurer.
If you pay six figures a year for workers' comp, liability, and auto and your losses are better than the industry's, you may be subsidizing worse operators. A group captive lets well-run companies insure themselves together — and keep what they don't spend.
What it is
Insurance, owned by the insured.
A group captive is a licensed insurance company owned by its member businesses. The members are similar, well-run companies who would rather share risk with each other than pay a carrier's profit margin for the privilege.
i.
ii.
The captive layer
The captive — owned by you and the other members — insures a layer of each member's losses, funded by premium set to your own expected losses.
iii.
Reinsurance
Large and catastrophic losses above the captive's layer are transferred to reinsurers. No single claim sinks the group.
iv.
Underwriting profit returns
Premium not spent on losses and expenses — plus investment income on it — belongs to the members and is returned over time.
Who it fits
Not for everyone. On purpose.
Captives reward companies that control their losses and penalize those that don't. The screen is deliberate — it's what makes the economics work for the members who get in.
Typical fit
- Roughly $150,000+ per year in casualty premium (workers' comp, general liability, auto)
- Loss history better than the industry average, for several years
- A real safety culture — training, return-to-work, driver qualification
- Financial strength to post collateral and absorb a bad year
- A long-term view: this is a five-year decision, not a renewal
- Common members: trucking fleets, contractors, manufacturers, distributors
Probably not yet
- Premium well under six figures — the fixed costs don't pencil
- Recent large or frequent losses without a clear fix
- Cash too tight to post collateral
- A need to exit quickly or change carriers every year
- No appetite for board meetings and financial reporting
- Good news: a guaranteed-cost program from us may still beat what you have
Process
From fit review to membership.
We don't sell a captive. We run the numbers, tell you whether it beats your alternatives, and if it does, introduce you to the programs where your peers already are.
01
Feasibility review
Five years of loss runs, payroll and fleet data, current premiums, and financials. Our intake reads what you send; a producer models it.
02
Compare to guaranteed cost
Expected cost in the captive versus the best traditional program we can place — in good years and bad. You see both.
03
Program introduction
If it fits, we introduce you to captive programs matched to your industry and size, and walk you through their underwriting.
04
Onboarding & service
Collateral, claims handling, loss control, and the ongoing service — certificates, endorsements — stay with us.
FAQ
Captive questions.
What exactly is a group captive?
An insurance company owned by its member businesses. Similar, well-run companies join to insure part of their own risk — usually workers' comp, general liability, and auto. A licensed fronting insurer issues the policies, the captive takes a layer of each member's losses, reinsurance covers large losses, and members share in underwriting profit and investment income.
What are the risks?
Collateral requirements (cash or letter of credit), the possibility of assessments if the group's losses exceed projections, a multi-year commitment with exit provisions, and more involvement than a guaranteed-cost policy. Returns depend on the group's results and are never guaranteed.
How much can we save?
We won't quote a percentage — anyone who does before seeing your loss runs is guessing. The honest answer comes from the feasibility review, which compares your expected captive cost to the best traditional program we can place, in good years and bad.
Do our certificates and filings change?
No. Policies are issued by a licensed, rated fronting insurer, so certificates, filings, and contract compliance look the same to your customers and regulators.
Is this a securities or tax product?
Group captive participation is an insurance arrangement, not a securities offering, and nothing on this page is tax, legal, or accounting advice. Captives have tax and accounting implications; involve your CPA and counsel in the decision — we'll work with them.
General and educational information. Group captive participation involves collateral, potential assessments, and multi-year commitments; it is not suitable for every business. Past results of any captive do not guarantee future results. IMD may receive compensation from captive managers, fronting insurers, or reinsurers in connection with placements, disclosed on request. See Licensing & Disclosures.
Get a quote
Talk to a person.
(332) 333-2353 IMD Insurance Agency LLC767 Broadway #1239, New York, NY 10003
Hours: business hours — fill in
Good to have readyCurrent policies and declarations · 3–5 years of loss runs · payroll and revenue · any contract or lender insurance requirements