Gary Warrn, Valley Forge Captive Advisors, photo

A Risk Management Solution to Believe In

Valley Forge Captive Advisors is a subsidiary of McConkey Insurance & Benefits. Specializing in group domestic captive products, Valley Forge is focused on group captives for mid-to large-sized businesses.  Gary W. Warren, CPCU, ARM, is the President and Principal at Valley Forge Captive Advisors.

valley-forge-captive-advisorsWarren is a proponent of domestic captives as a risk management tool for businesses. “One of the nice things about a captive is that it can offer coverage that clients cannot buy in the regular market – or have chosen not to buy in the market,” says Warren. “We have clients that have risk management needs that regular insurance can’t meet. Rather than having to turn them down, I can work with them to create a captive.”

It’s not just about the tax advantage

Warren finds that captives are a new idea to some clients. “When people first hear about captives, they sometimes focus on the tax advantages,” says Warren, “But it’s important that they understand that captives provide coverage and a solution for risk.”

While he’s been working with enterprise risk management captives for the last few years, it’s only recently that his clients have been able to take advantage of them. “People were interested, but couldn’t take advantage of captives because their businesses weren’t profitable enough these last few years. But now that the economy has improved, businesses are starting to have the kind of profits it takes to create a captive.”

Enterprise risk captives are such a specific market, Warren believes that there are only a few really good sources for education on them. “A captive manager like Intuitive provides excellent education,” he notes, adding with a laugh, “You had better learn about them – if you don’t, someone else will sell one to your clients.”

New lines of business

Warren enjoys having another inroad for new business. “Working with Intuitive has helped me to see that there are a lot of different captive models. I like the way Intuitive does it – they have enough risk sharing to really make sure that, if the client is ever audited, Intuitive has done a good job of demonstrating that they’re a risk transfer mechanism, not just a way to avoid taxes.”

“There are still a lot of companies out there that don’t know enough about captives. It’s a great differentiator for a firm like ours. When you come to the table with a product like a captive, it’s a financial mechanism to reduce costs – it’s something I definitely enjoy explaining to clients. I’ve been doing this for almost 20 years, and it’s definitely a way of handling insurance that I believe in.”