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Captives – A Natural Progression for Entrepreneurial Companies

Based in St. Louis, Missouri, J.W. Terrill is a brokerage firm with just under 200 employees that offers a broad range of commercial insurance products, risk management consulting, surety bonds, and employee benefits. JW Terrill is ranked one of the 100 largest brokers of U.S. business, by Business Insurance magazine.

J.W. Terrill recently added enterprise risk captives to their offering. “We’ve been working with group captives for 15 years,” notes Duke Niedringhaus, Senior Vice President of J.W. Terrill’s captive practice. “We are looking to grow in the area of enterprise risk captives.”

Funding uninsured risk

JW Terrill logoEnterprise risk captives are ideal for the mid-market space that many of J.W. Terrill’s clients occupy. “An enterprise risk captive is a natural progression for an entrepreneur who owns a company, particularly if they already use a group captive to fund some of their uninsured business risk,” notes Niedringhaus.

J.W. Terrill works extensively with casualty group captives, employee benefits captives, and property captives, and finds that clients who launch one captive alternative are often ideal candidates for developing a combination of captive options, including enterprise risk captives.

Niedringhaus works with a wide variety of clients on captive strategies. “We work with businesses as diverse as convenience stores, security and manufacturing facilities on captives,” says Niedringhaus. “The common denominator for the companies that are optimal for captives is that they are usually the best in their class and really understand the value of protecting their uninsured risk.”

Keeping an eye on captive trends

As a board member of the Self Insurance Institute of America (SIIA), Niedringhaus maintains a keen interest in industry and market trends.  SIIA is the leading national association representing captives.  “Intuitive is a very professional firm and well respected within SIIA”, notes Niedringhaus. “The company leaders at Intuitive come from an insurance background, so they understand how to go about underwriting and pricing various coverages.” Niedringhaus also appreciates Intuitive’s high level of disclosure and transparency on the Colorado Reinsurance Exchange, or C-Rex, that it manages.

“Intuitive is a conservative company,” says Niedringhaus, “so they’re not out there pushing the envelope or trying to make captives fit for companies that aren’t right for them.”

Niedringhaus believes that the enterprise risk captive market will grow in the coming years, and so will group captives. “Working with Intuitive helps J.W. Terrill deliver a solid option to clients,” says Niederinghaus, adding, “The major issue with captives is being able to hold them up to scrutiny.  I can feel confident that all the documentation is in order, the reinsurance pools are structured properly, and the client will be set if they ever need to undergo an audit.”