Established in 2016, the Performance Insurance Company (PIC) is a member-owned heterogeneous group captive created exclusively for the InCite Performance Group membership. As our name suggests, we believe in performance based insurance; If a company performs well and manages it's losses, it should reap the benefit. Due to InCite members' superior understanding of risk management, members of the Performance Insurance Company are best of class in all industry types. PIC allows these innovative, forward thinking companies to control their insurance destiny by providing insulation from the turbulence of the traditional insurance market and allowing them to take captive their well earned dollars.
Performance Insurance Company is uniquely structured to put the member first. Managed in the Cayman Islands, PIC is soon to be the fastest growing captive in the marketplace because of the InCite Performance Group network. The types of coverage underwritten by PIC in the U.S. include: Workers’ Compensation, Auto Liability, Auto Physical Damage, and General Liability. For our Canadian members coverage underwritten includes: Commercial General Liability, Auto Liability, Auto Physical Damage, and Contractors Equipment.
PIC has a Board of Directors that is comprised of all the shareholders which meet together annually. To join the program, initial capitalization is $36,000 which purchases a share of stock in the company. Each shareholder has one vote and a simple majority rules. Each year will stand alone and PIC will issue policies through our "A" rated domestic policy issuing company.
Reinsurance is placed to protect our members from excess and aggregate losses above designated levels. Each member will be individually assessed for premium, collateral, and individual loss funds based upon previous experience and loss history.
Performance Insurance Company will hold an annual board meeting for members offshore (the exact location is determined by the members) and members are expected to attend. Again, each shareholder will have one vote and a simple majority rules. The Board of Directors is responsible for advising on the underwriting of the program, the finance and investment decisions, and the risk control goals of the captive. In addition to these, the Board of Directors will also review the annual captive audit. It is expected that there will be active participation.
The PIC captive uses an experience related formula to calculate members individual premiums for each year, which is primarily based on the members expected loss history. The member pays a premium to fund for his or her individual losses but it allows for risk sharing and risk shifting among the entire membership for excess losses. An independent actuary will review the data from the previous 5 years and will calculate the members premium based upon the aforementioned formula. The data is trended and then assessed to predict what the losses will be for the individual member in addition to what should be reserved for shock losses (above $100,000). Finally, expenses are calculated to arrive at a member's annual premium. The formula is done on an individual basis and reassessed every year.