The transportation industry faces significant risks including fleet accidents, liability claims, & business interruption.

The reasons for pursuing captive insurance strategies include:

Deploy tailored insurance coverage that addresses transportation’s specific operational risks.
Manage the cost volatility of traditional insurance premiums, especially when it comes to liability and cargo coverage.
Leverage captive insurance as a tool for fleet safety and loss prevention initiatives.

SRS Transportation Practice Group offers captive insurance solutions that provide not only risk transfer, but also a platform for implementing advanced risk management and safety programs. By integrating telematics data and predictive analytics, SRS helps transportation companies minimize their risks and optimize insurance costs. Our approach focuses on creating long-term value through improved safety, operational efficiency, and financial performance.

broker smiling with arms crossed SRS Captive Insurance

Benefits and Outlook for 2025...& Beyond

Transportation companies engaging with SRS can anticipate benefits such as reduced insurance costs, better claims management, and enhanced operational safety. These outcomes can be reflected in key performance indicators, including decreased frequency and severity of losses as well as lower total cost of insurance (TCI).

As the transportation industry continues to evolve through the advent of new technologies and regulatory challenges, companies with proactive captive insurance strategies will be well-equipped to navigate these changes and sustain their overall growth.

Transportation Practice Group FAQs

Why is captive insurance particularly suitable for the transportation industry?

The transportation industry faces high-risk scenarios and significant liability exposures. Captives offer tailored coverage for fleet accidents, cargo liability, and business interruption risks, providing more control—and potentially offering lower costs—than traditional insurance.

Can captives cover the specific risks associated with international transportation operations?

Absolutely. Captives can be designed to cover international risks, including cargo loss in international waters ; regulatory compliance across different jurisdictions; and political unrest, providing a unified risk management solution.

How does SRS support transportation organizations in establishing their captive insurance companies?

SRS provides expertise in identifying the unique risks faced by transportation companies, assisting with captive formation, domicile selection, regulatory compliance, and the ongoing management of captives (to align with each company’s evolving risk landscape).

What are the advantages of using a captive for fleet safety and loss prevention programs?

Captives enable transportation companies to directly link their insurance costs with their loss prevention efforts. Investment in safety programs can reduce claim costs, which can in turn be reflected in lower insurance costs through the captive.

How do transportation companies benefit financially from using a captive insurance solution?

Transportation companies can benefit from reduced insurance costs over time; improved cash flow from direct access to reinsurance markets; and the return of underwriting profits and investment income––all of which enhances overall financial performance.

SRS Transportation Practice Stats

120+ Transportation Captives
Types of Captives
- Group Captive
- Single-Parent
- Cell Facilities
- Risk Retention Group
- Commercial (Re)Insurance

The Need for Captive Insurance Strategies

Data from the Bureau of Transportation Statistics, the National Highway Traffic Safety Administration, and the Federal Motor Carrier Safety Administration reveal that total miles driven for commercial and personal purposes have been on the rise since 2011. Simultaneously, highway accidents involving large trucks or buses have also increased.

Contributing factors include:

- Increased number of vehicles/miles covered: Higher traffic density due to an overall uptick in driving.
- Distracted driving: The prevalence of smartphones impacting accident frequency.
- Severity: Property/physical damage and bodily injury (and their ensuing costs) have risen due to newer vehicles with advanced technology and safety features.

- Medical inflation:Higher average costs for medical care following injury.
- Market volatility: The commercial automobile market faces challenges such as insolvencies and carriers pulling out of segments like long-haul trucking and passenger transport.

About Strategic Risk Solutions

SRS is the world’s largest independent insurance company manager. With over 25 years’ experience, SRS provides management and consulting services to a wide range of insurance company structures, from single-parent captives to complex commercial insurers and reinsurers. SRS has operations in North America, South America, Europe, Barbados, Bermuda, Canada, Cayman Islands, and South Africa.

Establish a trusted partnership with SRS.

Transportation Practice Group