3 November 2015Actuarial & underwriting

Atlas Insurance Management unveils new captive structure

Atlas Insurance Management, the US-based captive insurance management firm, has revealed a new captive structure in Vortex, a workers’ compensation risk exchange.

Vortex is operated by Vortex Re, a North Carolina-licensed reinsurance company.

In addition to providing reinsurance coverage, Vortex allows participating captives to pool their workers’ compensation risks in order to achieve risk distribution, a requirement for insurance company tax treatment. Each company buys reinsurance for its own risk from Vortex Re, which in turn shares its assumed risk with the pool of participants by buying reinsurance from them.

“Financing retained risk in a captive insurance company can not only lower your annual premiums but can also create a new stream of profit revenue,” said Martin Eveleigh, chairman, Atlas,

“Vortex allows participating companies to retain the risk and reap the reward of their worker’s compensation programmes.”

Atlas said that to qualify for Vortex, businesses should have a high-deductible or self-insured workers’ compensation programme. In addition, companies should retain no less than the first $100,000 per loss occurrence, demonstrate financial strength and favorable cash flow, be committed to risk management and loss control, provide historical five-year loss and exposure data and show a willingness to form a captive or expand the use of an existing one, according to the firm.