COLUMBUS, Ohio, Aug. 10 /PRNewswire/ -- National claims and risk
management service provider Avizent announced today the launch of
the Restaurant Franchise Captive Program II, an innovative
risk-sharing captive for restaurant franchisees covering all lines
of business – workers' comp, auto liability, general liability and
property. The program is backed by a national A-rated
carrier, which issues the policies and provides the reinsurance.
Avizent is also partnering with Concordis Group Inc., a
leading financial holding company, to share the risk for the new
restaurant captive.
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"Our newest program highlights the reality that captives today
are not just for the hard market," notes Rick Stasi, Chief Operating Officer at Avizent
Alternative Risk. "Our program gives brokers the chance to
offer their clients more value-added services and gives
organizations that are not familiar with captives the opportunity
to participate. Plus, analysts believe the hard market is
coming, so now is clearly the ideal time to move forward with a
captive arrangement."
Under Avizent's first restaurant captive program, participants
assumed all of the risk. The new program offers two options
based on the level of risk. With the "Entree" option,
participants assume 100% of the risk, and in return, secure profits
returned if the program is well-managed. The "Appetizer"
option gives participants the opportunity to share one-third of the
risk, along with Avizent and the broker, and secure the potential
of receiving 50% of the profits returned from premiums.
Avizent's original captive for restaurant franchisees was
launched in 2004, and proved to be highly popular and successful.
The program has returned $9.1
million – about 40% of what was paid for premiums – in
profits for participants. Due to strong underwriting and
claims administration services, as well as safety programs and
fraud detection, this captive has averaged a 15% loss ratio since
its inception.
"We believe in the concept, strategy and goals of Avizent's
restaurant captive," says Trent
Sommerville, Chairman and Chief Executive Officer of
Concordis Group. "It's time we bring the benefits of captives
to small and mid-sized organizations. We are excited to team
up with Avizent to bring affordable and flexible options to
restaurant franchisees looking to create better, more
cost-effective workers' comp and liability programs."
Avizent is also partnering with United Alternative Risk
Insurance Solutions, LLC, an affiliate of United Agencies, to bring
the captive to the national marketplace. Unlike the original
program, which was offered only through United brokers, the newest
program will be offered by other brokers nationwide who have
experience in the captive market and restaurant industry.
"One of the best features of this program is that it enables
brokers to play in a different game,"
explains Everett Newman Jr., CIC,
Managing Partner with United Alternative Risk Insurance Solutions.
"In today's soft market, too often brokers end up in the
commodity business – simply pricing programs. I like to
remind other brokers that if you live by price, you die by price.
This option allows us to provide real, value-added services
to our clients and to distinguish our offerings from other
brokers."
Newman notes that Avizent's original risk-sharing captive has
changed the business model for participating United clients.
"When my clients look at opening new stores or completing
acquisitions, in their pro forma they build in a portion of the
profit for insurance; this has created an additional profit center
they didn't have until now."
Captives, which allow employers to create their own self-funded
insurance program, are traditionally used only in hard markets when
prices are high and insurance coverage is more difficult to find.
In addition to the two restaurant franchise captives, Avizent
has also created innovative programs for other industries – from
hospitality and trucking to manufacturing and retail – that enable
brokers to offer small and mid-sized clients the ability to profit
from their premium dollars.
Brokers and program managers with additional questions about
Avizent's captive programs should contact Stasi at 888-646-9675 or
rstasi@avizentrisk.com.
About Avizent
Avizent, based in Columbus,
Ohio, is one of the most innovative claims and risk
management service providers in the
United States. They offer client-defined solutions in claims
management, managed care, alternative risk and risk management
information systems. The company has over 40 locations nationwide.
For additional information, visit the Avizent website at
www.avizentrisk.com or call 888-646-9675.
About Concordis Group, Inc.
Concordis Group, Inc. (Pink Sheets: CNGI) is a diversified
holding company that provides business insurance solutions through
its two wholly owned subsidiaries: Concordis Insurance SPC (CISPC)
and Concordis Capital, Inc. (CCI). CISPC, a Cayman Island
corporation, is a captive insurance company that specializes in
structuring and managing alternative risk management solutions for
mid-market companies. CCI, a Florida corporation, provides captive cell
funding for CISPC and other businesses and organizations.
About United Alternative Risk Insurance Solutions,
LLC
United Alternative Risk Insurance Solutions provides captive
program formation and management services to homogeneous industry
groups and heterogeneous groups including the Restaurant Franchise
Captive Program and the Growers Captive Group. The company is
affiliated with Miller United Insurance Brokerage, Inc. and United
Agencies, Inc.
Company Contact
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Media Contact
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Tracy Mock
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Joy Scott
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847-543-1681
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818-610-0270
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tmock@avizentrisk.com
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joy@scottpublicrelations.com
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SOURCE Avizent
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