What We Do

Business Summary
Our company will rent a portion of a major insurance carrier’s insurance captive, which includes a deeply discounted insurance policy.  Under the brand name of CompBlue, workers’ compensation policies will be issued primarily to construction and manufacturing companies.  CompBlue rates will be up to 20% less than those of the state-sponsored “insurers of last resort” that currently provide the vast majority of workers compensation coverage for this market segment.
Business Model 
CompBlue will rent a segregated cell (or “rent-a-captive”) of an existing insurance company’s captive.  Included in the “Rental” is the purchase of their insurance with a high deductible ($250,000) in exchange for a rate that is roughly 70% below retail.  The product will be sold through licensed Property & Casualty Insurance agents in each state.  Renting their captive will enable CompBlue to provide coverage in every state in which the “host” captive provides coverage, utilize their in-house administrative and claims management infrastructure, as well as their A.M. Best rating for strength.
Customer Profile 
The target customer is a small to medium blue collar (construction and manufacturing) company with annual premiums of at least $50,000, loss to premium ratios below 40%, and experience modifiers in the 100% – 125% range.  We will require complete application submissions from licensed agents including 305 years of client loss histories.
Competitors, Direct 
Direct competitors are state-sponsored so-called “insurers of last resort” which include the varieties of “State Funds” or carriers who must cover blue collar risks as part of the high-cost “assigned risk pool.”  These competitors are the most expensive insurance carriers in the nation.  CompBlue will not be a “low-price” product, but will provide its coverage at a price lower than these State Funds.
Competitors, Alternative 
Any insurance company admitted to write workers compensation insurance in any state could be considered to be a competitor.  Only 5% of admitted carriers in California choose to insure blue collar risks, and those which choose to do so provide coverage to large companies with very high annual premiums in the quarter-million dollar per year and up category.  This leaves the small-to-medium size blue collar market with more than enough business to support CompBlue for decades.