The latest from I-RE for you;
I–RE, the re/insurance underwriters and captive specialists, have relaunched RE–PAID, its flagship captive proposition, refocusing on an underserved “core mid-market” of US businesses, paying between $1m and $5m to $10m in premium, with five-year loss ratios below 40%.
Although the captive sector demonstrates strong growth year-on-year, both in terms of numbers and premiums, with captive premiums now representing nearly 25% of the US commercial insurance market, according to EY (2024), I–RE says there’s a gap that this core mid-market segment falls into: too small to justify a ‘pure’ single-parent captive but too large to be satisfied with a group captive which delivers premium savings but little flexibility or control.
As part of the relaunch, I–RE has:
- Increased its commercial property primary limit to up to $20m and its general liability limit to up to $5m
- Added a new excess facility for both lines up to required limits
- Enhanced its structured service, with support and guidance, to fast-track brokers and clients from enquiry through to captive formation
- Built a brand new website, designed following client and broker feedback to best serve their needs
Through RE–PAID, clients invest collateral into their own single-parent captive and become their own reinsurer, taking on a limited amount of risk. They gain influence over the handling of their claims, which means they can control their own downside. Because collateral doesn’t stack in RE–PAID, and clients renew their insurance and take on reinsurance risk annually, that one-off collateral investment can earn exceptional annual returns. Clients can retain profit and build an asset that grows in value over time, rather than simply saving on premium. Premiums remain consistent and brokers continue to earn commission.
For the average RE–PAID client paying $1m–$5m in premium to I–RE the average annual return on investment has been 37%.
RE–PAID for brokers
I–RE is a broker-only market keeping it business as usual. For mid-market brokers serving these types of businesses, having no captive offering is no longer an option.
- RE–PAID is mid-market captives made easy for brokers.
- Turnkey product with everything included.
- Makes a captive placement as easy as a conventional deal.
- No need for fronting, no need for stacking collateral, and no need for any additional reinsurance placement.
Key benefits
- Brokers maintain income and control – Premiums remain consistent and brokers earn commission.
- RE–PAID can transform the client conversation and experience.
- Brokers gain competitive advantage, increase retention and win new clients.
Andy Jeckells, Co-founder of I–RE, comments:
“There’s a large, ambitious segment of the market that’s been overlooked: businesses paying $1m to $5-10m in premium, with hundreds of thousands of them across the US. That’s why we’ve refocused RE–PAID entirely on this segment, rebuilding it around the investment and ROI language its owners think in, rather than the premium savings driving smaller businesses, or the ‘total cost of risk’ approach used by big business.
“These businesses are not big enough to stand alone, but they’re big enough to want the flexibility and control a group captive can’t offer. Single-parent captives have traditionally been too complex and costly for them, weighed down by fronting fees, stacking collateral and reinsurance arrangements that stop making sense below $5-6m of premium. And group captives are built to save clients money, not make them money, with compulsory dividends, so no retention of profits, and a lack of control over claims or the captive itself. RE–PAID was built to close that gap.”
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