Agricultural businesses encounter a range of risks, from crop failure & livestock disease to supply chain disruptions.
Top reasons for these companies to consider captives or alternative risk strategies include:
1) Managing the volatility of weather-related and other natural risks,
2) Securing coverage for unique risks that traditional insurance may not cover adequately, and
3) Improving financial stability through customized risk financing solutions.
SRS addresses these needs through specialized captive insurance programs that include parametric insurance solutions, tailored risk assessments, and comprehensive risk management strategies. Our approach ensures that agricultural businesses are not only protected against their unique industry risk but also are able to benefit from more financial flexibility and greater resilience.
Benefits & Outlook for 2025... & Beyond
By partnering with SRS, agricultural clients can achieve substantial reductions in their insurance costs while simultaneously upgrading their risk management practices and enhancing their company’s overall financial health. As these clients move forward, key metrics of success can include improved loss ratio as well as a downturn in insurance expense ratio. And as the agriculture sector continues to face uphill challenges such as climate change and global market pressures, our captive solutions can offer an effective way to navigate uncertainties with confidence.
Agricultural Practice Group FAQs
How does a captive insurance company benefit an agricultural business?
Captives allow agricultural businesses to insure against specific risks––such as crop failure, livestock disease, and supply chain disruptions––with customized policies that may not be available (or affordable) on the traditional market.
Can captives cover risks associated with climate change and natural disasters?
Absolutely. Captives can be structured to provide coverage for many climate-related risks, including drought, floods, and hurricanes––all while giving clients the flexibility to adjust their coverage as these risks evolve.
What role does SRS play in helping agricultural firms with captive insurance?
SRS assists with the strategic planning, formation, and management of captives, ensuring they’re properly structured to meet the unique risk management needs of individual agricultural businesses.
Are there cost advantages to using a captive for insuring agricultural risks?
Yes, captives can lead to significant cost savings through direct access to reinsurance markets. Captives can also reduce costs by returning underwriting profits and investment income to your business itself.
How can captives support sustainable farming practices?
Captives can offer incentives for adopting sustainable and environmentally friendly farming practices by providing lower premiums or enhanced coverage options for companies that mitigate risk through “green” initiatives.
SRS Agricultural Practice Stats
27+ Agricultural Captives
Types of Captives
Group Captives
Single Parent
Cell Facilities
11 Active Domiciles
Arizona
Barbados
Bermuda
Cayman Islands
Delaware
Malta
Michigan
Missouri
North Carolina
Oklahoma
Vermont
Agricultural Industries Served
Aquaculture
Farming
Fishing
Food Processing
Food Services
Forestry
Horticulture
The agricultural industry employs roughly 40% of the global population and generates more than $300 billion in annual revenue in the United States alone. As such, weather fluctuations, regulatory changes, supply chain disruptions, and other uncertainties can have a major impact on critical agricultural operations worldwide. But with an SRS agricultural captive, effective risk management comes standard, helping to ensure your operations continue to run as safely and efficiently as possible.
SRS captive advantages can include coverage for:
• production risk, • specialized risks related to business interruptions, • weather-related events, • and liability exposures.
Insurance Programs We Manage
Auto Liability
Auto Physical Damage
Completed Operations
Employers Liability
General Liability
Home Warranty
Medical Stop Loss
OCIPs/CCIPs
Professional Liability
Structural Defect
Subguard
Workers Compensation
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.
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