AI Summary
5 min readJason Duby, a captive manager at Garnet Captive, explains group captives as a way for businesses with strong loss control to form their own insurance company, reclaiming unused premiums plus interest that carriers would otherwise keep. In this episode of the Power Producers Podcast, host Dave breaks down the mechanics, differences from other captives, financial commitments, and client profiling cues, using Garnet's USA-domiciled, mixed-industry group captive as the main example for general liability, workers' comp, and auto lines.
Types of Captives and Group Model Basics
Captives vary: single-parent captives serve one large business; homogeneous ones focus on one industry like transportation or roofers; protected cell captives let agencies place pre-vetted clean risks with limited exposure to boost profitability. Group captives pool multiple businesses—some same-industry, some mixed—to pre-fund losses efficiently. Members own shares collectively, gaining control over rates, claims, and safety. Unlike carriers retaining profits from low-loss accounts, groups return unused funds from two layers: a primary fund for frequent small losses and a shared large-loss fund. Garnet emphasizes clean, best-in-class risks with similar profiles to protect the group.
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What you'll learn
- 1 (01:24) **Guest Introduction and Backstory** - Jason Duby introduces his sales background and role at Garnet Captive as agency/brokerage development manager
- 2 (02:56) **Overview of Group Captives** - Defines group captive as businesses forming an insurer to reclaim pre-funded losses
- 3 (03:45) **Garnet's Unique Features** - Highlights reduced upfront costs, creative shared loss model, and flexible retentions
- 4 (04:37) **Types of Captives Explained** - Breaks down single-parent, group (homogeneous/mixed), property, industry-specific, and protected cell captives
- 5 (07:05) **Setup Process and Costs** - Outlines underwriting, collateral (25-30% of premium, cash/LOC), and down payment; no share purchase fee
- 6 (09:55) **Ownership Structure** - Members (business owners) collectively own via share purchase
- 7 (10:22) **Underwriting and Entry Steps** - Underwrite for clean losses, risk appetite, premium fit, long-term stability
+ Full timestamped outline available in the app
Show Notes
In this Power Producers Podcast episode, David Carothers is joined by Jason Duby, Captive Manager at Garnet Captive, to dive deep into the concept of captives and how they can provide valuable opportunities for businesses, particularly as the market continues to harden. Jason breaks down the intricacies of captive insurance, explaining how they work, who benefits, and what sets Garnet Captive apart from other options in the industry.
David and Jason explore the different types of captives, the benefits of participating in one, and the financial implications for businesses that choose this route. The conversation also touches on the importance of risk management and the steps businesses need to take to set up and benefit from a captive insurance program.
Key Highlights:
What Is a Captive?
Jason
explains how businesses can form their own insurance group to manage risk,
reduce costs, and potentially recoup unused premiums—highlighting the
efficiency of group captives.
Types of Captives
They break down single-parent, group, homogeneous, and protected cell captives,
explaining their structures and benefits for different business types.
The Garnet Captive Edge
Jason outlines Garnet’s faster
distributions, lower upfront costs, and risk management support that help
businesses see quicker returns.
Financial Commitment
They discuss the cost of joining a captive, including collateral and
underwriting requirements for businesses with strong risk profiles.
Risk Management & Claims
Captives allow businesses to customize claims handling and implement tailored
risk management strategies.
Tips for Producers
David and Jason
advise producers on spotting good captive candidates and warning signs like
poor loss history or price-focused buyers.
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