Tyler L. Gaynes · Commercial Insurance & Risk Management
Captive Insurance & Alternative Risk Financing
A captive or larger retained-risk structure changes how a company funds losses and manages insurance responsibilities. The right discussion starts with the business’s loss experience and financial capacity. Tyler L. Gaynes helps leadership evaluate risk-financing options in the context of the broader commercial insurance program.
Test the economics against the losses
Review loss frequency, severity, development and the controls that influence future results. Compare expected outcomes with adverse scenarios rather than treating one favorable loss year as a forecast.
Look at the total financial commitment, including retained losses, program expenses, collateral and the cost of outside insurance. Consider how those obligations interact with working capital and other demands on the business.
Compare more than one structure
A captive, a deductible program and a self-insured retention can create different responsibilities. Review which options fit the organization’s operations, claim volume, ability to fund losses and appetite for administration.
Claims handling, reporting and access to information matter alongside the financing arrangement. Leadership should understand who makes claim decisions, what services are included and which responsibilities remain with the company.
Plan for change and exit
Acquisitions, divestitures, changing operations and deterioration in loss experience can affect a program that looked attractive at inception. Evaluate continuing obligations, collateral arrangements and exit considerations before committing.
A starting review can use current policies, several years of loss runs, claims-development information, financial statements, safety practices and growth plans. Coordinate the insurance analysis with the company’s financial and legal advisers where their work is needed.
This page offers general professional perspective and is not legal advice or a representation of coverage for any specific policy or circumstance. Coverage depends on the actual policy language.