At Union Risk, we specialize in helping businesses take control of their insurance costs and turn risk into opportunity through captive insurance. Traditional insurance models often leave companies at the mercy of rising premiums, unpredictable renewals, and limited claims transparency. By transitioning to a captive structure, our clients have gained financial stability, improved cash flow, and recaptured underwriting profits that would otherwise go to third-party insurers.

This case study highlights how one of our clients—facing escalating premiums and limited risk management flexibility—transformed their insurance strategy by leveraging a captive solution. Their journey demonstrates the tangible benefits of captive participation, from substantial cost savings to enhanced risk control.

If your company is looking for a smarter, more strategic way to manage insurance, this case study will provide a firsthand look at how Union Risk can help.

Utilizing Captive Insurance for a Leading NYC Transportation Company

Our client, a prominent transportation company based in New York City, was facing significant challenges in securing insurance coverage. With a fleet of over 500 vehicles and an annual revenue of approximately $250 million, the company is a critical player in the city’s transportation infrastructure. Despite their importance, they were struggling to find viable insurance options that would allow them to continue operations smoothly.

• Industry: Transportation/Non-Emergency Medical Transport
• Location: New York City
• Annual Revenue: $250 million
• Total Premium: $8,500,000

Challenges

New York City’s complex regulatory environment and high-risk profile made it exceedingly difficult for the client to access traditional insurance markets. Many insurers either declined to provide coverage or offered policies with premiums that were prohibitively expensive—some quotes were nearly four times higher than what the company could afford. The escalating insurance costs were threatening the company’s financial stability and its ability to compete in the market.

Union Risk Services’ Solution

Union Risk Services stepped in to address these challenges through our captive insurance specialty. We conducted an in-depth risk analysis and identified that a captive insurance structure would be the most effective solution for the client. By leveraging our expertise and relationships with top-tier insurers, we developed a custom captive insurance program tailored specifically to the client’s needs.

Captive Insurance Structure

The captive insurance program was designed to provide comprehensive coverage while significantly reducing the client’s insurance costs. The total premium under this structure was set at $8.5 million—less than a quarter of the lowest quote they had received from traditional insurers. This cost efficiency was achieved by:

• Utilizing the captive to self-insure lower layers of risk, reducing reliance on the traditional insurance market.
• Implementing robust risk management strategies to minimize potential losses.
• Creating a reinsurance layer that protected against catastrophic losses without inflating premiums.

Results

The captive insurance program not only provided the necessary coverage at a dramatically lower cost but also offered additional benefits:

• Financial Stability: The client was able to reinvest the savings from reduced premiums back into their business, enhancing their operational capabilities.
• Risk Control: With the captive structure, the client gained greater control over their risk management strategies, leading to improved safety protocols and a reduction in claim frequency.
• Long-Term Savings: The captive model allowed the client to build reserves, which could be used to cover future claims, further lowering their long-term insurance costs.
• Increased Enterprise Value: Our client’s new captive enables them to increase their business’s valuation because our client now owns their own captive insurance company where enterprise value is created.

Conclusion

Through Union Risk Services’ innovative captive insurance solution, our client was able to overcome the significant barriers posed by the traditional insurance market. The custom captive structure provided them with the coverage they needed at a fraction of the cost, ensuring their continued success in the highly competitive New York City transportation industry. This case study exemplifies how Union Risk Services can deliver tailored insurance solutions that not only meet our clients’ needs but also drive their financial growth and stability.

Stop overpaying for insurance, let’s talk captives.