Willis Towers Watson launches a group captive solution for the middle market

Rhea-AI Summary

Willis Towers Watson (NASDAQ: WLTW) announced the launch of the Homestead Insurance Company Incorporated Cell, aimed at upper middle market companies. This group captive solution allows members to purchase insurance more efficiently over a 5-to-10-year period while retaining ownership of underwriting profits. It promises competitive up-front premiums, potential long-term savings, and control over administrative decisions. Partnering with The Hartford, Homestead provides coverage against adverse losses and aims to offer a tailored strategy in an uncertain insurance market.

Positive

• Launch of Homestead Insurance Company will enhance offerings for upper middle market companies.
• Members gain ownership of underwriting profits, resulting in potential long-term cost savings.
• Partnership with The Hartford ensures A+ rated insurance coverage for adverse losses.

Negative

• None.

ARLINGTON, Va., June 10, 2020 (GLOBE NEWSWIRE) -- Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today announced the launch of the Homestead Insurance Company Incorporated Cell (Homestead), 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 program.  

The program will provide companies a better and more cost-efficient way to purchase insurance over a five-to-10-year period, while eliminating the peaks and valleys of the standard market and giving members ownership of their underwriting profit otherwise retained by an insurance company. An individual member’s results will be directly related to its own loss performance along with the group’s shared experience collectively.

Homestead will offer value to its members through up-front premiums that should be competitive with traditional market programs and long-term cost that will be significantly lower than traditional programs if members maintain good loss experience. In addition, the program will provide opportunities for additional savings through dividends, greater impact and efficiency in handling of claims, and control over all administrative decisions of the group program. Homestead will also add value by providing true insurance for adverse losses from The Hartford, an A+ rated insurer, and avoiding the cost and time commitment involved in either a single-parent captive or traditional group program.

“I’m thrilled to expand on our current middle market solutions with Homestead,” said Jim O’Connor, head of Middle Market and Specialty Broking, Willis Towers Watson. “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.”

“We’re excited to partner with Willis Towers Watson on this captive solution,” said Mo Tooker, head of Middle and Large Commercial at The Hartford. “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.”

“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,” said Joe Peiser, global head of Broking, Willis Towers Watson.

To learn more or explore membership in Homestead, please contact us at Captive.Homestead@willistowerswatson.com.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

Media contact

Ileana Feoli: +1 212 309 5504
ileana.feoli@willistowerswatson.com

FAQ

What is the purpose of the Homestead Insurance Company launched by WLTW?

The Homestead Insurance Company is designed to provide upper middle market companies with a more efficient and cost-effective way to purchase insurance.

How does the Homestead Insurance program benefit its members?

Members benefit from competitive premiums, long-term savings based on loss performance, and ownership of underwriting profits.

What is the relationship between Homestead and The Hartford?

The Hartford will issue admitted insurance policies to members of the Homestead Insurance program and provide coverage for adverse losses.

What type of companies is the Homestead Insurance Company targeting?

Homestead is targeting upper middle market companies seeking tailored insurance strategies.

When was the Homestead Insurance Company announced by WLTW?

The Homestead Insurance Company was announced on June 10, 2020.