Last Updated on: August 10, 2023
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In this episode of The Power Producers Podcast, David Carothers interviews Jarid Beck, Co-Founder of Risk Management Advisors. Jarid discusses his expertise in the captive space, and how agents can introduce captives as a solution to their prospects and clients in the middle market arena.

Episode Highlights:

  • Jarid mentions that Risk Management Advisors’ specialty is helping individual business owners restructure their insurance coverage through single-parent captives, particularly focusing on workers’ compensation, general liability, auto, property, and excess lines of coverage. (7:00)
  • Jarid explains that setting up a captive insurance company requires a long-term strategy, confidence in losses performing well, and understanding that it may not be cheaper in the first year but can reduce overall costs of risk over time. (11:45)
  • Jarid discusses the key mistakes to avoid when setting up a captive insurance company are taking on too much too quickly and under capitalization, so it’s important to take a phased approach and ensure adequate funding from the start. (20:00)
  • Jarid mentions that the process of setting up a captive insurance company has become faster and more efficient, with approval times ranging from 5 to 8 weeks, depending on the complexity of the goals and objectives. (29:35)
  • Jarid mentions that Captives can be used as a cost-saving tool and brokers should be discussing these options with their clients to avoid losing business to competitors. (39:32)

Tweetable Quotes:

  • “Our primary specialty is single parent captives or pure captives, which is a captive that is really set up to write the insurance or serve the interests of one company or their family of companies.” – Jarid Beck
  • “The whole point of captive is to optimize premium spend, but it’s also to develop partnerships. Everybody’s interests are aligned, right? Everybody wants the losses low, the underwriting profits high, and it becomes less about price and more about quality. That’s what we strive for with a lot of our clients” – Jarid Beck

Resources Mentioned:

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