NCEO Insurance logo

Our mission at the NCEO is to help employee ownership thrive. In partnership with the National Center for Employee Ownership (NCEO) and Innovative Captive Strategies (ICS), Scott Insurance Services (An ESOP-owned agency) is building a captive exclusively for ESOPs to help reduce insurance costs and gain control and stability.

As we work toward finalizing the NCEO OWN Health Captive for the July 1 launch, we invite you to join the various webinars hosted by trusted leaders in the employee ownership community, and reach out to us for more information.

If you work at an ESOP-owned NCEO member company and would like to learn more:

What are the benefits of being an OWN Health founding member?

  • Establish and vote on early decisions regarding structure, committees, and future of OWN Health
  • Set the tone for the culture, “feel” and vision of the captive
  • Reap the benefits of learning best practices from your captive peers starting on Day 1

What can you expect at a Founding Members’ Meeting?

  • Meet your fellow captive members and professional partners ready to support you throughout this new business endeavor
  • Get an inside look at the OWN Health captive structure, inception timeline, upcoming meetings and more
  • Hear from other Founding Member companies and their perspective and journey to OWN Health

All ESOP companies interested in participating in the Founding Members’ Meeting should be working closely with their broker partner and ICS to ensure an easy captive insurance transition.

 

Captive Insurance is a group of companies that form to self-insure an insurance company owned and controlled by the employee-owned companies that form it. We are offering two types of captive insurance programs, one focused on health insurance and the second focused on workers compensation, general liability, and automobile coverage.

  • Over 75 ESOP companies have engaged in educational sessions
  • Over 30 participating in one-on-one sessions
  • Over 20 companies have submitted underwriting data
  • Companies that have already submitted underwriting data range in size from under 50 eligible employees to over 600, and they are in diverse fields, such as manufacturing, insurance, and distribution.

Captives typically reduce annual premiums by 10% to 25%. Additionally, if claims costs are controlled throughout the year, remaining premium is returned to members. Captives also allow ESOPs to take advantage of the following benefits:

  • Control and transparency over the insurance process
  • Access to Fortune 500 resources
  • Return of underwriting profit and investment income
  • Stabilize insurance costs, avoiding the big insurance market cycles
  • Asset Protection and access to lower reinsurance costs

What kind of ESOP company is best suited for a captive?

Companies in captives are usually in the range of 75-300 employees have annual revenues greater than $20 million. Smaller companies have too much variable risk (one person can account for a major percentage loss) and larger companies can self-insure on their own.

The NCEO believes that employee-owned companies may be strong candidates for captive insurance for these reasons:

  • Employee-owned companies have better-than-average risk profiles.
  • Employee-owned companies are diversified.
  • Employee-owned companies benefit from strong cultures and long term focus.
  • Captive insurance programs will provide our members with more control and transparency over their insurance programs. We expect that the NCEO captives will provide long-term cost savings to our members and allow them to retain more of their annual premium each year.

If you would like to learn more:

Contact Chad Duke of Scott Insurance to schedule a one-on-one meeting, cduke@scottins.com

  • We welcome participation by other insurance agencies. If you are an advisor or work for an insurance company that is an NCEO member and are interested on behalf of your clients, please contact Suzanne Vinson (SVinson@nceo.org) so you can learn about participating.