GCM launches new solution to help businesses enter captive insurance space

Global Captive Management, Ltd. (GCM) has announced the launch of ‘Outcomes SPC’, a new solution that will offer businesses a cost-effective, streamlined way to enter the captive insurance space.

This will allow younger, smaller, or more entrepreneurial companies to take control of their coverage needs, and benefit from GCM’s extensive industry experience.

“Outcomes SPC is intended for and attractive to candidates that would also be looking into a single-parent captive company, but who want a lower point of entry,” said Alanna Trundle, President of GCM. “Those are companies who have an entrepreneurial spirit, they’re willing to take on risk, they have a good loss control program, they see the captive as a long-term investment, and they’re looking for stability in premiums.”

A traditional single-parent captive means that one entity owns and runs its own insurance company, handling all governance, costs, and compliance requirements.

In contrast, a segregated portfolio company, like Outcomes SPC, functions within a shared structure, achieving cost efficiencies while remaining complete independence and separation from one another.

“This allows all companies who take part to reap the rewards from one another while also keeping their assets and liabilities separate. Think of it as a rental solution – such as leasing an office space rather than purchasing the building,” GCM explained.

“Outcomes SPC offers many advantages, including operational efficiencies, lower levels of government fees, and potentially lower levels of capital required compared to starting a standalone captive,” Trundle added.

He continued: “Outcomes SPC also has a flexible structure, where each insurance program remains independent, allowing companies to tailor their coverage to their needs. Additionally, the solution can be used as a steppingstone for companies looking to gain experience before eventually transitioning to their own captive structure.”

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