Marsh McLennan Agency Launches Secure Harbor Group Captive to Help Senior Living Clients Manage Challenging Market Conditions
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group captive insurance companyfinancial
A group captive insurance company is an insurer owned by several businesses that pool their resources to buy and manage coverage together, like neighbors chipping in for a shared fire truck. It can lower and stabilize insurance costs and give participants more control over claims and reserves, but it also exposes them to collective losses and capital needs. Investors watch these arrangements because they affect a firm’s risk profile, cash flow, and potential contingent liabilities.
general and professional liability coveragefinancial
Insurance that protects a business from different kinds of legal and financial claims: general liability covers accidents like bodily injury or property damage that occur on company premises or from its products, while professional liability covers claims of negligence, errors or bad advice in the services the company provides. For investors, this coverage matters because it reduces the risk of large unexpected payouts that can harm cash flow, earnings and the company’s value—think of it as an umbrella for accidents and a shield for mistakes.
third-party administrator (TPA)financial
A third-party administrator (TPA) is an outside company hired to handle day-to-day administration of employee benefits, insurance claims, or retirement plans on behalf of an employer or insurer. Think of a TPA as a property manager who processes claims, manages paperwork, and ensures payments and reporting happen correctly; its efficiency and accuracy can affect a firm’s costs, regulatory risk, and cash flow, making it relevant to investors evaluating operational risk and expense predictability.
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A captive is a company created by a parent firm to perform a specific function—often insurance, lending or other services—primarily for the parent and its affiliates rather than the general public. It matters to investors because captives move revenue, costs and risk inside a corporate group, which can improve efficiency or concentrate exposure; like an in‑house department acting as a private supplier, a captive can change cash flows and the visible strength of the parent’s balance sheet.
alternative risk financingfinancial
Alternative risk financing are ways a company pays for and manages large, unusual, or costly risks without relying only on standard insurance policies — for example by setting aside its own cash, creating a captive insurer, or turning risk into tradable securities. Investors care because these choices change a company's cash needs, potential future losses, and balance-sheet transparency; like choosing to keep more savings at home instead of buying an insurance policy, it can raise both reward and short-term exposure.
nuclear verdictsfinancial
An extremely large jury award in a civil lawsuit that far exceeds typical settlements or damages, often driven by punitive damages or juror anger. Like an unexpected financial earthquake, it can suddenly saddle a company with massive costs, raise insurance premiums, and change investor expectations about future legal risk and earnings volatility. Investors watch for these because they can materialy hurt cash flow, valuation and management decisions.
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--
Marsh McLennan Agency (MMA), a business of Marsh (NYSE: MRSH) and a leading provider of business insurance, employee health and benefits, retirement and wealth, and private client insurance solutions across the US and Canada, today announced the launch of Secure Harbor, a group captive insurance company designed specifically for skilled nursing, assisted living, and senior living communities.
Domiciled in Washington, D.C., Secure Harbor offers businesses providing senior living services with similar risk profiles general and professional liability coverage with limits of up to $1 million per occurrence and $3 million in aggregate. Members will have access to MMA’s experienced third-party administrator (TPA) services team and safety consulting experts, many of whom bring firsthand senior living nursing experience. The captive is managed by MMA’s Captive Risk Practice and National Senior Care Practice and is exclusive to MMA clients.
The senior living industry is grappling with a challenging traditional insurance market, driven by rising claims cost due to social inflation and nuclear verdicts together with shrinking insurer capacity. Recognizing these challenges, MMA created Secure Harbor as an alternative risk financing solution tailored to the needs of clients in this sector. This group captive insurance model gives participating organizations greater control over their coverage terms and conditions, more stable pricing over time, and the potential to share in profits when the group performs well.
“In today’s volatile insurance landscape, our senior living clients are vocal about their need for alternative risk financing solutions,” said J.D. Seymour, Vice President of the Captive Risk Practice at MMA. “Secure Harbor provides the flexibility, stability and control that industry leaders need in order to remain focused on sustainable growth.”
About Marsh McLennan Agency
Marsh McLennan Agency is a business of Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information about Marsh McLennan Agency, visit marshmma.com, or follow us on LinkedIn and X.
