Cox: 'Our captive insurance program exceeded expectations'
Following the completion of the first year of its captive insurance company, the Independent Tire Dealers Group LLC (ITDG) is more than pleased with the results.
"Results from the first year of operation exceeded all of our expectations," says Michael Cox, CEO and president. "The goal now is to add participants and increase the lines of coverage."
The Independent Innovative Captive Insurance Co. is an Arizona c-corporation. It currently handles worker's compensation coverage for the founding members. Its second policy year began April 1.
"Not only did we outperform our financial model for the first year, we had 100% renewal of all policy holders going into year two," says Richard Howard, chairman of the Independent Innovative Captive Insurance Co.
"All of our shareholders agreed that operating our own insurance company contributed to the outstanding first year results.
"The actual claims were less than 20% of our projected losses. This is a result of active claims management by the company's full-time risk manager and our third-party administrator, Gates McDonald.
"Now that we have finalized the renewal process," says Howard, "we are actively talking with potentially 20 new members/shareholders of the captive company."
The ITDG is comprised of 101 members, which includes 56 shareholders located in 11 western states. The shareholders represent approximately 301 retail tire and service centers.
Major suppliers to the group include Continental Tire North America Inc., Pirelli Tire North America Inc., Treadways Corp., Hankook Tire America Corp., Yokohama Tire Corp., Nexen Corp., YKS, Titan Tire Corp. and Runway.
Parts suppliers include Autozone Inc., Carquest Corp. and NAPA. The organization also has exclusive tires, plus equipment and oil programs.