Captive Insurance Solution Turns Retail Losses Into Opportunity​
Discover how a captive insurance strategy helped this retailer reduce risk and how it could work for you.
THE CLIENT
A leading authorized national wireless carrier retailer operating 228 retail locations nationwide, delivering wireless products and services across the U.S.
THE SCENARIO
During and after COVID, The company faced sharp annual insurance premium increases driven by a surge in smash-and-grab thefts across retail locations. Losses were frequent but typically fell below deductibles, forcing the company to fund most claims out of pocket while absorbing rising premiums with little long-term cost control or predictability
DISCOVERY
A captive insurance feasibility review showed that the retailer’s high-frequency, low-severity losses were ideal for a captive structure. By formalizing retained risk, the company could replace inefficient deductibles, gain control over claims, capture underwriting profits, and reduce exposure to volatile commercial insurance market cycles.
SOLUTION
Bryson implemented a customized captive insurance program with tailored deductibles, loss triggers, and exclusions aligned to retail theft exposures. The captive improved claims oversight, provided direct access to loss data, stabilized coverage terms, and allowed premium dollars to be retained and invested rather than paid entirely to commercial carriers.
THE RESULTS
The captive enabled the wireless company to retain underwriting profits, reduce long-term insurance costs, and earn investment income on reserves. Premium volatility was smoothed, dependency on commercial market cycles was reduced, and the program created potential tax efficiency while delivering clearer insight into losses and stronger long-term risk control.