CrossRoads is pleased to offer two separate rental captive programs, Calypso and Destination, through National Interstate Insurance Company. These programs are exclusive to public transportation risks and available to operations with a better than average loss history. Alternative risk transfer (ART) programs are not a new concept. They began in the 1950’s in offshore domiciles. Today, the captive community stands at over 4,100 entities that account for over $21 billion in premium and $54 billion in total capital and surplus.

The benefits of captive participation are available to mid-size to large passenger fleet operators. Both programs can help by bringing low operating costs, economies of scale and predictable insurance program pricing to public transportation risks.

The programs offer the following benefits:

• Provides all required fleet insurance coverages, including workers compensation coverage from a single source
  
• Features return of unused premiums, investment income and long-term control of insurance costs
  
• No capital contributions or long term commitments are required
  
• Captive programs are less susceptible to cyclical swings in pricing and coverage availability
  
• Captive premiums are tax deductible
  
• While similar, this is not a self-insurance. Maximum annual costs are known in advance and limited by contract
  
• Each captive participant’s “account” is reported separately from all others
  
• Provides operators with the lower operating costs and economies of scale previously available to only consolidators or the largest fleet operators.

National Interstate’s reputation and experience with alternative risk transfer and captive programs is well known. They took the lead in offering the transportation industry these innovative insurance programs. As experience has shown, the businesses that participate in a captive program do not leave the program. There is a 90% retention rate. Captive program participants realize that they have “control” over their insurance pricing and program that can’t be matched in the commercial insurance market.