Article ID: 57361b68ba298e6ab4195de86cf481a287540eee52ce96cfa40f336ba300d0f7
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/third-party-business-turns-captives-into-profit-centers-panel/
Body Text
Third-party business turns captives into profit centers: Panel - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Third-party business turns captives into profit centers: Panel by Gavin Souter From left, Martin Eveliegh, formerly of Risk Management Advisers, Kirk Watkins of Fairshare Insurance and Hartley Hartman of Risk Partners. Alternative Risk Transfer/Captives Feb 6, 2026 ORLANDO, Fla. — Adding third-party business, such as affinity programs and voluntary benefits, can provide tax advantages and transform captives from cost centers into profit centers, a panel of experts said. In addition to benefiting the company, such strategies can improve customer retention and reduce costs for employees and others enrolled in the programs, which are often highly profitable for traditional insurers, they said. Using captives to write third-party business is often a “blind spot” for captive owners, said Hartley Hartman, Mount Pleasant, South Carolina-based business development manager at captive manager Risk Partners. “We’re so focused on playing defense and trying to save money on our commercial spend that at the end of the day, we really forget to play offense,” he said Thursday at the World Captive Forum, sponsored by Business Insurance. Adding affinity programs, such as insurance for tenants, extended warranty coverage for customers, coverage for contractors and voluntary benefits for employees, all can be written through captives, Mr. Hartman said. Such programs also help captives reach the 30% third-party risk threshold that courts have ruled is necessary to meet the U.S. Internal Revenue Service’s requirement to be treated as an insurance company for tax purposes, he said. Captive owners that use the vehicles to cover third-party risks may want to consider using a fronting insurer to address regulatory concerns, said Martin Eveliegh, a former managing director of Risk Management Advisers based in Charlotte, North Carolina. “It makes regulators more comfortable; they know who they’re dealing with. They’re dealing with some big, A+ rated insurance company. They worry less about the captive,” he said. Using a front also can help marketing efforts for the coverage being offered because consumers will be familiar with an insurer’s name, said Kirk Watkins, Plymouth Landing, Pennsylvania-based president and founder of Fairshare Insurance, which specializes in supplemental benefits coverage. Many supplemental coverages, such as accident or critical illness insurance, have low loss ratios, he said. “Typically, these programs run a loss ratio of about 20% to 30%, so you can actually provide the employees with better benefits for less premium by putting them in the captive,” Mr. Watkins said. Related News Your honey is lying to you: pantry fraud on the rise February 6, 2026 Calif. budget proposal, bill aim at struggling comp fund February 6, 2026 Small volume, big cost impact from psychotherapeutic, neurological drugs February 6, 2026 Uber ordered to pay $8.5 million in trial over driver sex assault claims February 6, 2026 The BI Top 10 for the week of Feb. 2, 2026 February 6, 2026 Illinois bill ties business licensing to comp February 6, 2026 London insurance growth outpaces talent pipeline: LMG February 6, 2026 Police question CEO over massive data leak February 6, 2026 Legislation in Spain, Greece aims to rein in social media February 6, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 14.4
}