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Insurance – Are you in a competitive advantage or disadvantage?

Are you aware that we are heading toward a very hard market for insurance? A hard market is a time when the insurance companies have complete control and power over the service and protection they provide to you, their customer, as well as the rate at which they provide it.

You may be at a competitive disadvantage as this moves forward if you are not considering involvement in a captive insurance program. More than $150 billion in Fortune 500 insurance has already flowed into the alternative market, a market defined as protected-risk self-insurance or insurance captives. A significant number of your industry peers has already invested considerable time and energy to establish this type of power and market advantage for this industry so that you have the ability to benefit from investigating the alternative market.

In a recent article published in the January/February edition of Grading and Excavation magazine, Nate Heying writes: “If you have not looked into alternative insurance programs, you are already among the minority.” He goes on to talk a great deal about many of the facets of insurance captive programs that CFA leadership has already learned and begun to implement. “Key benefits,” writes Heying, “of group captive programs include long-term control, enhanced claims management, upfront savings, and potential for significant returns plus investment income.” He goes on to say, “Every organization has dealt with a claim that they felt was fraudulent yet was settled and paid by the insurance carrier for reasons that benefit the carrier.”

Read the full article on Insurance Captives.

“The fact remains that you can’t manage what you don’t know you don’t know,” states Jay Odice of Odice International, the captive management that the CFA has retained to deliver our industry’s only captive opportunity. “We apply state of the art industry-specific risk management protocols for all participating members. The insurance industry doesn’t know your business, and even worse, doesn’t really care. This is why it is so essential for your Association to be involved. Through that vehicle, members have access to the risk management that is recognized and developed from the insurance program, thereby raising their viability as a participant in the program.”

The choice will always remain yours, but the knowledge that has been developed already proves just what this industry will soon largely benefit. Contact Ed Sauter for additional information on the state of the CFA’s captive insurance program.

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Concrete FACTS, a publication of the Concrete Foundations Association, is THE voice for residential concrete industry news, market intelligence, business strategies, technical solutions, product information, and other resources for professionals in the cast-in-place concrete industry. Subscriptions to Concrete FACTS is available to anyone involved or interested in the residential concrete industry as a service to your industry. Please contact CFA Headquarters to find out more about your free subscription or Email Us