Due to STICO’s desire to expand, the mutual has continued to grow its risk appetite, according to Colin Donovan, president of STICO Mutual Insurance Company, RRG.
STICO is a Vermont-domiciled mutual captive focused on manufacturers, installers, and distributors of storage tanks, vessels and related products.
He said the mutual had since ventured into petroleum equipment contractors who do not manufacture anything, “they just do the installation work”.
“We ventured into pressure vessel manufacturers, which are a different kind of tank, ones that are under pressure, as opposed to being open to the atmosphere,” he told Captive Intelligence.
He highlighted that the captive’s latest area of growth has been food and beverage tank manufacturers.
“I think our future growth will come from pressure vessels in the food and beverage space, but the manufacturing process is very similar across the board, it’s just to which exact standard they’re building it to,” he said.
Donovan noted that there’s no strict red line when it comes to accepting new members to the mutual.
“If you’re involved with tanks, you can become a member,” he said. “However, there are certain qualities we look for in new members.”
Donovan said STICO values family-owned businesses where the business owners are actively involved in the day-to-day operations of the company.
“We know that in these types of companies, the quality of the product matters more to upper management because the owners are directly engaged,” he added. “That’s something we prioritise.”
Donovan said history is important to STICO, especially in terms of how companies have approached problems when they arise.
“Issues happen from time to time, and your product may have defects but it’s about how you, as the owner of a manufacturing company, address those issues and make things right with your customers,” he said.
“If your approach is, ‘that’s not my problem, here’s my insurance carrier’s number,’ then you’re not the type of insured we’re looking for.”
Instead, Donovan said the STICO wants to work collaboratively with its manufacturers to solve problems as they arise.