Willis Towers Watson said that the new solution, Homestead, will offer cost-efficient ways for companies to buy insurance while removing peaks and valleys from the standard market

Wilis Towers Watson

Willis Towers Watson launches new group captive solution. (Credit: Pixabay/Free-Photos.)

US-based insurance brokerage firm Willis Towers Watson has launched Homestead Insurance Company Incorporated Cell, a group captive solution designed for upper middle-market companies.

Homestead will reinsure The Hartford, which will issue admitted insurance policies to members selected for this group programme.

The group captive solution is expected to offer companies a better and cost-efficient way to purchase insurance over a five-to-ten-year period while removing the peaks and valleys of the standard market.

It will also offer members ownership of their underwriting profit which is otherwise retained by an insurance company. The result of an individual member will directly be related to its loss performance along with the group’s shared experience collectively.

Long-term costs under Homestead are expected to lower than traditional programmes

The insurance brokerage firm claims that its Homestead will offer value to its members through up-front premiums which should be competitive compared to traditional market programmes and the long-term costs are expected to significantly lower than traditional group captive solutions if the members maintain good loss experience.

Willis Towers Watson middle market and speciality broking head Jim O’Connor said: “I’m thrilled to expand on our current middle market solutions with Homestead. Homestead is another valuable risk transfer option, in addition to our industry-specific Differentiated Broking Solutions strategy, that provides unique advantages to our clients beyond standard risk transfer.”

Additionally, the group captive solution will offer opportunities for savings through dividends, greater impact and efficiency in handling claims and control over all administrative decision of the group programme.

Homestead could also bring value by providing true insurance for adverse losses from insurer The Hartford and can avoid the cost and time commitment involved in either a single-parent captive or traditional group programme.

Willis Towers Watson broking global head Joe Peiser said: “In today’s uncertain insurance market, companies need a thoughtful insurance strategy customized to their needs to effectively manage risk. Homestead will provide this strong, tailored strategy for our clients.”

The Hartford middle and large commercial head Mo Tooker said: “We’re excited to partner with Willis Towers Watson on this captive solution.

“We understand the needs of midsize businesses and how critical it is to take a flexible and consistent approach in managing risk to create better economic outcomes for clients.”