GCM launches Outcomes SPC to lower barriers to captive insurance entry
Global Captive Management (GCM) has launched Outcomes SPC, a segregated portfolio company that will give businesses the opportunity to embrace the benefits of a captive structure while facing less of the barriers to entry that are sometimes associated with captive insurance.
GCM said that this allows companies that are younger, smaller, or more entrepreneurial to take control of their coverage needs, while also taking advantage of GCM’s more than 45 years of combined management-level industry experience.
“Outcomes SPC is intended for and attractive to candidates that would also be looking into a single-parent captive company, but who want a lower point of entry,” said Alanna Trundle (pictured), president of GCM. “Those are companies who have an entrepreneurial spirit, they’re willing to take on risk, they have a good loss control program, they see the captive as a long-term investment, and they’re looking for stability in premiums.”
With a traditional single-parent captive, one entity owns and is responsible for the operation of its own insurance company. This includes managing all governance, costs, and compliance requirements. A segregated portfolio company, like Outcomes SPC, functions within a shared structure, benefiting from economies of scale while remaining completely isolated and separate from one another. This allows all companies who take part to reap the rewards from one another while also keeping their assets and liabilities separate. GCM said that it was similar to a rental solution – such as leasing an office space rather than purchasing the building.
“Outcomes SPC offers many advantages, including operational efficiencies, lower levels of government fees, and potentially lower levels of capital required compared to starting a standalone captive,” said Trundle. “Outcomes SPC also has a flexible structure, where each insurance program remains independent, allowing companies to tailor their coverage to their needs. Additionally, the solution can be used as a steppingstone for companies looking to gain experience before eventually transitioning to their own captive structure.”
“I am excited to see Outcomes SPC help companies break into the captive space and take control of their own insurance structure,” said Tom Stewart, President of the Holmes Murphy PLUS division, which includes GCM. “Since 1982, GCM has provided a unique approach to all of our solutions and portfolios, with our boutique services; a dedicated and experienced team; and our best-in-class responsiveness. We’re thrilled to provide that same level of commitment and peace of mind to our clients with Outcomes SPC.”
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