Willis Towers Watson has launched Homestead Insurance Company, a group captive business designed for upper middle market companies.
Homestead will reinsure The Hartford, which will issue admitted insurance policies to members selected for this group programme.
The programme promises to provide companies “a better and more cost-efficient way to purchase insurance over a five-to-10-year period, while eliminating the peaks and valleys of the standard market and giving members ownership of their underwriting profit otherwise retained by an insurance company.”
An individual member’s results will be directly related to its own loss performance, along with the group’s shared experience collectively, Homestead said. Its up-front premiums will be competitive with traditional market programmes, while costs will be “significantly lower than traditional programmes, if members maintain good loss experience.”
Homestead will provide opportunities for additional savings through dividends, greater impact and efficiency in the handling of claims, and control over all administrative decisions of the group programme.
It will also provide true insurance for adverse losses from The Hartford, avoiding the cost and time commitment involved in either a single-parent captive or traditional group programme.
Joe Peiser, global head of broking at Willis Towers Watson, said Homestead will provide a strong, tailored strategy for its clients. “In today’s uncertain insurance market, companies need a thoughtful insurance strategy customised to their needs to effectively manage risk,” he said.
Jim O’Connor, head of middle market and specialty broking at Willis Towers Watson, called Homestead “another valuable risk transfer option, in addition to our industry-specific differentiated broking solutions strategy, that provides unique advantages to our clients beyond standard risk transfer.”
Mo Tooker, head of middle and large commercial at The Hartford, added: “We understand the needs of midsize businesses and how critical it is to take a flexible and consistent approach in managing risk to create better economic outcomes for clients.”
Willis Towers Watson, Homestead, The Hartford, Joe Peiser, Jim O’Connor, Mo Tooker