SeCAP Inc. simplifies access to the strategic financial benefits of captive insurance through a streamlined, guided process. We provide a platform for organizations to achieve tailored, cost-efficient risk management without the complexities and capital demands of forming a standalone captive entity.
SeCAP's Off-Set Strategy™
Our approach integrates expert guidance, regulatory efficiency, and a robust professional ecosystem to ensure a smooth transition from traditional insurance models to a sophisticated self-financing strategy. We guide you through cell establishment within our sponsored captive structure, provide continuous compliance oversight, and enable the use of our proprietary The Off-Set Strategy™ to transform insurance premiums to balance sheet assets.
The following steps outline how SeCAP empowers middle-market companies and professional firms to enhance control over their risk financing, reduce long-term costs, and improve financial stability.
Assessment:
By providing answers to five simple questions, SeCAP Inc. can start this process of a no-obligation assessment on the impact of a sponsored captive on your company.
SeCAP begins by understanding your organization’s unique risk profile. By applying insurance givens industry-specific loss runs, premium costs, and other information as measured against the answers to the five questions. By identifying opportunities to improve coverage, reduce costs, and gain greater control over your risk financing.
Analysis:
Following the initial assessment, clients are invited to liaise with SeCAP market professionals and actuaries to enable a comprehensive analysis. A custom financial model and insurance impact statement is produced during our analysis.
This analysis conceptualizes the SeCAP’s proprietary Off-Set Strategy™ and how it transforms underutilized premiums into measurable balance sheet assets and stable premium costs.
Personalized Strategy & Insurance Options With No Fees:
SeCAP doesn’t offer a one-size-fits-all solution; we provide a personalized approach. Based on the assessment and our analysis, we design and customize insurance coverages. Our fiduciaries and professional services ecosystem are dedicated to your insurance needs. Our goal is to provide trusted oversight every step of the way and empower your organization to achieve greater financial stability and resilience.
FAQs
What is SeCAP Inc.?
SeCAP Inc. is a sponsored captive insurance company that allows multiple participants (known as “participants” or “cells”) to operate under a single legal entity. The sponsor provides the core capital and infrastructure, while each participant uses a legally segregated cell to insure its own risks.
How does SeCAP Inc. differ from a traditional captive?
- Traditional Captive: Usually formed and capitalized by a single parent company to insure its own risks.
- SeCAP Inc.: Owned and sponsored by a third party. Multiple, unrelated participants can rent cells instead of forming their own captive from scratch.
- Cost Efficiency: SeCAP’s approach alleviates all establishment costs and the ongoing costs associated with running a captive, making participation more accessible and financially efficient for organizations of all sizes.
What are the benefits of using SeCAP Inc.?
- Lower cost of entry – no need to provide full core capital.
- Faster setup – the sponsor has already established the infrastructure.
- Flexibility – participants can exit without dissolving a full captive.
- Segregated risk – each participant’s assets and liabilities are legally separated.
- Access to reinsurance markets – participants may benefit from group purchasing power.
- Enhanced financial performance – SeCAP’s sponsored captive approach, combined with its Off-Set Strategy, can increase profitability, earnings per share (EPS), and overall corporate valuation by optimizing risk financing and capital efficiency.
- Off-Set Strategy Advantages – strategically balances premium allocation, claims reserves, and investment income to minimize net cost of risk, reduce volatility, and enhance overall return on capital.
What is SeCAP Inc.’s Off-Set Strategy?
The Off-Set Strategy is a proprietary risk management and capital optimization approach that: – Allocates premiums and reserves across cells to maximize efficiency. – Uses surplus funds to offset losses in other cells within regulatory limits. – Integrates investment returns and reinsurance placements to improve overall financial outcomes. – Uses high surplus lines of insurance to off-set lines of insurance with high loss runs, effectively reducing overall volatility and improving predictability of results. – Helps participants achieve more predictable results while maintaining legal separation of liabilities.
Who can be a participant in SeCAP Inc.?
Participants can include corporations, associations, non-profits, or groups of individuals with common risk exposures. Typical users include: – Mid-sized companies seeking captive benefits without the overhead. – Trade associations pooling risk for their members. – Organizations needing tailored risk financing solutions.
What risks can be covered?
Coverage depends on regulatory approval but often includes: – Commercial lines of risk, such as property & casualty, general liability, and workers’ compensation. – Non-core lines of risk, including extended warranties, service contracts, and specialty or niche exposures. – Professional liability – Medical stop-loss coverage
How are cells protected from one another?
Most domiciles with sponsored captive legislation provide statutory ring-fencing of assets and liabilities. This ensures one participant’s losses cannot affect the assets of another participant or the sponsor, provided SeCAP Inc. is properly managed and compliant.
What role does the sponsor play?
The sponsor: – Provides the core capital. – Ensures compliance with regulatory requirements. – Engages professional managers, auditors, and actuaries. – Implements and monitors the Off-Set Strategy, including the use of high surplus lines of insurance to offset high-loss lines, optimizing results across cells. – Maintains an ecosystem of professionals in finance, legal, regulatory, third-party administration, actuarial services, and extensive service professionals across the insurance industry and related fields to support participants. – Offers additional services such as underwriting, claims handling, and reinsurance access.
What obligations do participants have?
Participants are only responsible for funding their cell’s premiums. SeCAP Inc. handles all other activities and provides full professional support, including: – Ensuring compliance with domicile regulations – Managing claims and risk oversight – Access to SeCAP’s ecosystem of finance, legal, regulatory, actuarial, third-party administration, and insurance service professionals
This approach allows participants to focus on their core business while SeCAP manages the operational, regulatory, and professional support necessary for their cell.
How are profits and losses handled?
Each cell’s results are segregated. Profits remain within the participant’s cell and can be: – Reinvested to build surplus – Distributed to the participant (subject to regulatory approval)
Through the Off-Set Strategy, surplus funds and high surplus lines of insurance can be strategically deployed to smooth results, reduce net cost of risk, and offset high-loss lines while maintaining legal separation.
How is SeCAP Inc. regulated?
SeCAP Inc. is licensed and regulated by the insurance department in the domicile where it is formed. Regulators oversee solvency, governance, reporting, and compliance to ensure participant protection and financial stability.
What happens if a participant wants to exit?
Exiting is typically simpler than dissolving a stand-alone captive. The participant may: – Run off its cell liabilities until closed – Commute policies if approved by regulators – Withdraw surplus once obligations are satisfied
How long does it take to establish a cell?
Depending on domicile and complexity, a new participant cell can often be set up within 30–90 days, which is significantly faster than forming a new captive from scratch.
What are the costs of participating?
SeCAP Inc. covers all costs associated with participation, including: – Initial capitalization of the cell – Regulatory and licensing fees – Management and administrative fees – Actuarial and audit costs
By covering these expenses, SeCAP significantly lowers the financial barriers for participants, making it easier and more cost-effective to access the benefits of a sponsored captive.
See How SeCAP Can Change Your Business
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