You have a client who’s a perfect fit for a captive. You’ve had the conversation, and they’re interested. Maybe excited. But there’s one step you’re stuck on: making sure you have the correct documents to move them forward. Without that clear step, everything comes to a halt. You want to know what to do next to best help your client and secure your book of business.
Captive Coalition has built the 5-5-5 Program to give you a simple way to move your best clients into captive ownership without the confusion that usually comes with it. This method has helped independent agents smoothly transition their best clients into captive insurance.
In this article, you’ll learn what the 5-5-5 Program is, what documents you need, why five years of data is non-negotiable, and how these documents help you keep your best clients. No fluff. No guesswork. Here’s all the information you need.
What is the 5-5-5 Program?
The 5-5-5 Program is a framework that simplifies the onboarding process for captive insurance. It’s designed for independent agents like you who already understand the value of captives and want a no-nonsense way to move premium clients into ownership.
The program revolves around three core documents, collected over five years:
- Policies
- Audits
- Loss Runs
This structure gives Captive Coalition what it needs to make smarter underwriting decisions without having your clients deal with unnecessary paperwork. It eliminates redundant applications, keeps the process moving, and gives a data-backed strategy to recommend captives.
Why Do Agents Need Five Years of Data?
Five years gives enough information to see patterns, not just outliers. This information is critical to know that your client isn’t just lucky.
One year isn’t enough information to see how their business performs. Five years show trends, how your client’s business performs under different conditions, how consistent their safety culture is, and how their claims behave over time.
We don’t expect to find perfection. We’re looking for predictability.
That predictability builds confidence in the captive’s performance. It also helps you set expectations with your clients about pricing, profitability, and whether a captive is truly the right fit for them.
The Three Core Documents
Here are the sets of documents needed to help us find predictability:
1. Policies
These tell us:
- What was covered
- Who was insured
- The coverage limits and deductibles
- Whether there was continuous insurance
This information confirms the structure and scope of your client’s historical insurance program. It also replaces the need for long applications since we know what we’re working with.
2. Audits
Audits provide us with the actual exposures after each policy year ends. This goes into:
- Payroll
- Gross receipts
- Job costs
- Number of vehicles
- Employee count
They provide information on the exposures. It is not just what was estimated when the policy started; it allows us to see what really happened.
3. Loss Runs
Loss runs tell us the whole story of what happened with your client’s claims:
- What losses occurred
- What’s still open
- Whether any lawsuits are involved
- What reserves are set
This answers the question: “What did they pay in premiums versus what they lost?” It’s how we calculate the loss ratio. They’re critical to making the case for captive suitability.
While loss runs can always be found, it can sometimes be challenging. Read our article on what you can do if there’s difficulty finding loss runs.
How This Helps You and Your Clients
When you have five years of policies, audits, and loss runs, you don’t need to waste time filling out insurance applications—no need for email chains or spreadsheets. You have the real numbers all in one place.
You also:
- Build stronger credibility with your clients.
- Centralize your client’s insurance documentation.
- Create a cleaner path if the IRS ever audits them.
- Help them see where safety and risk management need to tighten up.
Even if the client doesn’t go into a captive today, having the data ready readies them for future moves.
What Could Disqualify a Client?
If the data shows erratic losses, open lawsuits, or weak safety practices, there are many red flags. That doesn’t mean they’re completely out, but the conversation needs to shift from “when” to “how soon can you get in shape?”
Client Concerns and How to Handle Them
Here are some concerns you'll hear from clients when it comes to this program:
“How long will this process take?”
If the documents are ready, we can move in as little as 90 days. The real delay is waiting for clients to gather the paperwork. The sooner it’s provided, the sooner they can get into a captive.
To better understand why the process takes up to 90 days, read our in-depth article about the onboarding process to join a captive.
“Will this process be overwhelming?”
The short answer is no.
Keep in mind that this is mostly new territory for your clients. It’s like a maze for them. They’re turning to you to make sure this is a straightforward process. When the five years of loss runs, audits, and policies are there, the rest is sailing on smooth waters.
You’re not handing them a to-do list. The 5-5-5 Program lets you show them exactly what’s needed, why it matters, and how they’ll benefit long-term. You’re eliminating the confusion. And they’re trusting you in the process.
How This Matters to You and Your Clients Long-Term
These documents aren’t about getting into a captive. They’re about future-proofing the client’s insurance program.
If the IRS shows up, they’re covered. Does your client want to analyze data? It’s there. Do they want to plan for long-term growth? This information helps them better prepare for the growth they want.
This kind of preparation helps you stand out from every other agent still stuck in the renewal cycle of the traditional market.
Ready to Get Your Best Clients Into Captives?
If you have clients spending over $250,000 in premiums, take safety seriously, and are frustrated with the lack of control in the traditional market, don’t let paperwork be the reason they miss out.
The 5-5-5 Program isn’t so much complicated as it is structured. You gather five years of policies, audits, and loss runs. It also allows you to help your clients escape the continuous struggle of the traditional market.
Next, read our article on the upfront costs of joining a captive insurer. That way, if they qualify, they have an idea of how much they’ll need to put in financially.
Want to prequalify your clients? Click on the button below to see if your clients qualify for captives.
