Brett Phillips brings a unique perspective to the trucking industry. After starting his career in public accounting, a consulting role with a trucking client in 2004 led him down an unexpected path. What began as financial advisory work evolved into a decade-long position as an outside CFO, eventually leading to his full-time commitment as CFO of The 1975 Transportation Group in 2014. His journey from finance professional to trucking executive has given him valuable insights into both the operational and financial challenges facing transportation companies today.
Written by Brett Philips, CEO of The 1975 Transportation Group
As CFO turned CEO of The 1975 Transportation Group, I've seen firsthand how the right insurance partnership can transform operations. Our journey from traditional insurance to a Cottingham & Butler captive program reveals valuable lessons for the trucking industry.
The Traditional Insurance Challenge
In the standard market, our annual renewals were a constant source of frustration. Despite strong safety practices and positive loss history, we faced delayed pricing decisions that threatened our operations. Premium negotiations often concluded just days before expiration, jeopardizing our ability to secure freight opportunities and maintain proper documentation for our trucks. This was our experience until we joined a Cottingham & Butler Captive.
The Captive Solution
Upon joining the captive 6 years ago, we achieved great success. We've experienced:
· Stable renewals with increases capped at 4% in all but one year
· Equity positions in three policy years, leading to dividend opportunities
· Active participation in claims management, from reserve setting to settlement negotiations
· Proactive claims services that effectively reduce exposure
A Long-Term Partnership
Success in a captive model requires shifting from an annual rate-shopping mindset to building lasting partnerships. While challenges exist, particularly around collateral requirements, the benefits of premium stability and potential returns that a captive provides make it worthwhile for companies committed to safety excellence.
The results speak for themselves: we've maintained a positive equity position and received cash dividends that would have been insurance company profits in the standard market. More importantly, we've gained a true partner in managing our risk and safety programs, with renewal pricing now available 60-90 days in advance – a dramatic improvement from our previous experience.
For trucking companies facing similar challenges, our experience demonstrates how the right insurance partnership can do more than manage risk – it can drive sustainable growth and operational excellence.