Captivate_Issue1

SUPPLEMENT TO
NOTES FROM
NATIONAL INTERSTATE INSURANCE FOR ALTERNATIVE RISK MEMBERS

CONTENTS
LETTER FROM THE DIRECTOR 3
CAPTIVE HISTORY & MISSION 4
A NEW WAY OF THINKING ABOUT INSURANCE 5
MEMBERSHIP CRITERIA & PREMIUM DEVELOPMENT 6
MEMBERS BY REGION MAP 8
MEMBER SPOTLIGHT: BILL STRIMBU 10
MEET YOUR NATIONAL INTERSTATE CAPTIVE TEAM 13
AVAILABLE PRODUCTS & SERVICES 14
BY THE NUMBERS 16
RETURN OF EQUITY 17
RECAP: PAST ADVISORY BOARD MEETINGS 18
UPCOMING EVENTS SCHEDULE 19
Subscriptions:
The Captivate supplement is a free publication offered by National Interstate Insurance Company in support
of its customers.
Publisher:
Established in 1989, National Interstate Insurance is one of the leading specialty property and casualty
insurance companies in the country. Offering more than 30 different insurance products, including traditional
insurance, innovative alternative risk transfer (ART) programs for commercial companies and insurance for
specialty vehicle owners. Its customized solutions are made possible by its talented and dedicated team
members. National Interstate employs over 700 employees in offices in Northeast Ohio, HI and MO.
© 2017 National Interstate Insurance Company
2
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Editorial Contributors:
Amanda Genther
Chris Mikolay
Josh Stoll

Letter from the Director
JOSH STOLL
I am excited about the launch of the first annual edition
of Captivate, a supplement to our Extra Mile Magazine,
featuring our flagship Truck Alternative Risk Programs.
I hope you enjoy reading about the success of your
programs and, whether you’re a longtime member or
brand new to the “V” programs, learn something new
within these pages.
When I first started at National Interstate almost a decade
ago, I was immediately drawn to the Venture, Voyager and
Velocity programs. I could sense the tremendous amount
of energy and excitement around them. That enthusiasm
is shared by one of our long-term members, Bill Strimbu
of Nick Strimbu, Inc. Bill and his company truly embody
everything that these programs stand for – creating a
culture of safety, sharing of ideas and best practices and a
partnership with your insurance carrier. You can read more
about Bill and his experience on page 10.
On page 16 you’ll see the numbers that support our
success. Potential returns are at an all-time high with
nearly $20M in provisional net income accrued since
2014/15, and since 2001, we have returned $46.3M to
our membership!
As the insurance market continues to change, I believe
that more and more operators are going to seek
alternative risk programs. The Venture, Voyager and
Velocity programs of National Interstate will continue
to be uniquely positioned to meet the needs of those
best-in-class carriers.
In closing, I would simply like to say thank you. Thank
you to our agency partners who have been integral to
the success of these programs, and thank you to our
members for being the visionaries that have helped
them thrive. For those considering joining, we hope this
magazine demonstrates the high standards our members
set for themselves. On behalf of National Interstate, we
look forward to seeing the Venture, Voyager and Velocity
programs flourish for years to come.
Josh Stoll
Director, Truck Alternative Risk Programs
3

Like trucking itself, the market for trucking insurance
moves in cycles. It is frustrating and pricing is often
illogical, particularly for better run trucking companies.
National Interstate recognized the opportunity to create a
program for best-in-class trucking companies that would
allow them to capitalize on their commitment to safety
and outstanding loss performance, and after successfully
launching a group captive program targeted to passenger
transportation providers in the mid 1990’s and gaining
considerable expertise in the alternative risk world, National
Interstate, with its affiliated reinsurer, Hudson Indemnity,
LTD., launched the Voyager group rental captive program
in 2001. Voyager immediately afforded mid-market fleets
the opportunity to partner with their insurance company,
take on a reasonable layer of risk and see the benefit of
controlling their cost of risk. Today, Voyager stands at 34
active members and growing.
As National Interstate grew the Voyager program through
the early 2000’s there was interest in the concept from
smaller trucking companies who had an understandably
lower tolerance for risk. Recognizing this need, National
Interstate launched the Venture captive program in 2003
to fill a void in our alternative risk portfolio for insureds
seeking to retain the first $50K of risk. Venture now proudly
includes 48 active members.
Continuously seeking to offer an insurance experience built
around our customers, in 2006 the formation of Velocity
rounded out our truck alternative risk portfolio. Feedback
from select Voyager members indicated that they would be
interested in taking on more risk with the opportunity for a
potential higher reward. Velocity was created with a $250K
retention and contains five best-in-class members. Though
these are three distinct programs designed for fleets of
various sizes, each offers its members a better way to
control their insurance destiny.
4

CAPTIVE SUMMARY
AND
PROGRAM BENEFITS
A NEW WAY OF THINKING ABOUT INSURANCE.
Move beyond the limitations of traditional insurance.
With Alternative Risk Transfer insurance, your interests are aligned
with the insurance carrier and other best-in-class companies.
TAKE CONTROL With a significant portion of
premium available for return, members can affect their
total cost of risk through a commitment to safety.
CONTINUOUSLY IMPROVE Enhance your
operation with our superior risk management services,
consultants and tools.
COLLABORATE Work together with other like-minded,
best-in-class members with the same safety-centered
mindset that you have.
PERSONALIZED SERVICE Get to know your
program team and senior management at your insurance
company, including the CEO.
WE HAVE YOUR BACK With a dedicated
claims handling team focused specifically on truck
transportation operations, we strive to be your best
partner on your worst day.
STABILITY Exit the traditional insurance market and
the headaches that come with it.
5

MEMBERSHIP
CR
PREMIUM
DO YOU HAVE WHAT IT TAKES?
We seek members for Venture, Voyager and Velocity who:
➼ Have a commitment to developing and maintaining
an ongoing culture of safety at all levels.
➼ Exhibit a history of best-in-class results evidenced by
stable growth and sound financial statements.
➼ Are willing to commit to a long-term mindset.
Participants must understand that a primary reason
for the program is to minimize wild price fluctuations.
Short-term reductions of premium cannot be as
important as long-term cost-of-risk stability.
➼ Are willing to provide his or her time and expertise
to continuously raise the bar through sharing of
knowledge and best practices.
➼ Stand out from the crowd by exhibiting risk
management practices beyond industry compliance.
6

ITERIA &
DEVELOPMENT
AND HERE’S WHY IT MATTERS
Your experience has a significant impact on your premium
determination. Our method of underwriting incorporates
both quantitative data (mileage, payroll, revenue and
loss history), as well as qualitative characteristics of your
operation to determine your insurance costs. Qualitative
characteristics include safety culture and programs, hiring
practices and use of technology.
EXPERIENCE RATING OBJECTIVES
➼ Common, consistent across all participants
➼ Premium based on your experience
PRIOR 5 YEARS EXPERIENCE
LOSS RUNS
EXPOSURES
DEVELOP LOSS FUND
7

MEMBERS
BY REGION
One of the strengths of the program is its network of like-minded individuals. The map below illustrates where all of our
current Venture, Voyager and Velocity customers are located across the country.
8

“National Interstate has helped my
operation become better, safer and
more profitable year after year.”
Jason Proctor, Jason Proctor Transportation Inc.
“The most positive impact we’ve seen is
safety. Our company has created a much
safer environment
since joining the Venture program in 2008.”
Rhonda and Alan Branson, Stout Trucking, Inc.
“I like being in charge of our insurance
future. The stability of the program has
allowed us to invest in our own program to
meet our distinct needs
.”
Scott Romans, Romans Motor Freight
“National Interstate is the best program
to take
next
a quality
level
trucking company to
the of safety
performance, leading to better economic
performance in order to compete in today’s
tough trucking environment.”
William Hill, HTSI
9

Member Spotlight:
Bill Strimbu, President of Nick Strimbu, Inc., joined
the National Interstate family in 2002 as a traditional
trucking insured. Read on to find out why he made the
switch to an Alternative Risk program and why he’s kept
his policy with National Interstate for the last 15 years.
10

Why is it important to have an
insurance partner and not just an
insurance carrier?
There are a lot of reasons. First, if you have a really bad
accident, you want to make sure that your insurance
partner has your back. You don’t want them to cut a
check and run, leaving you hanging out to dry. The other
thing is, you’re going to have a bad year every once in
a while – there’s just some things that are out of your
control. With an insurance partner, you don’t get a 40%
•••••
You want to make
sure that your
insurance partner
has your back, so
your relationship
becomes a real
partnership.
•••••
insurance increase that puts you back on the street, trying
to find new coverage. A partner will likely take on added
risk during a bad year, so your relationship becomes a real
partnership. Third, we’ve played the numbers game before,
where you go out on the open market, trying to buy the
cheapest policy available. And these companies had such
poor claims management that we were penalized because
our losses went up due to the mismanagement. Now, I
know all of the claim professionals that I’ve worked with
at National Interstate by their first name and trust the work
that they do for my organization.
What are the benefits of being in a
group captive, or Alternative Risk
program?
The biggest benefit that I can see is that you have critical
mass. You have risk sharing with best-in-class companies
and you share information on best practices with those
companies. A lot of the times we may not even share
information about insurance; it could be about a tire that
another member is running, or an engine that’s horrible or
a new truck model. That stuff is invaluable because you
could make hundreds of thousands of dollars investment
into something that others have tried that doesn’t work.
As a small company, to be able to reach out to that many
carriers for their input is priceless.
Additionally, we started out with National Interstate in
a traditional truck insurance program from 2002-2004.
Currently, we receive the same type of professional claims
management and responsiveness we had back then, but
the add-on to us was that we were able to get premium
dollars back, which rewarded us for having an overall safe
trucking operation.
Why do you stay?
The people – I’ve known my product manager and
underwriter at National Interstate for over six years and I
made it a point to develop that relationship. I never want
him to have to give me a rate that makes me leave the
company nor does he want to. I share knowledge with him
all the time and we have an open-door policy. Not only with
him, but with my loss control team – this company doesn’t
grow people and then they exit them out the door. In the
Venture and Voyager programs, we’ve had a steady group
of people managing the programs. Anything that changes
doesn’t happen overnight and the members are asked for
their input. I’ve never had another insurance company
call me up to ask me what I think about something. And,
because of that partnership, that’s why captive membership
stays strong.
•••••
And, because of
that partnership,
that’s why captive
membership stays
strong.
•••••
11

Have you been able to leverage your
relationships with other Voyager
members to positively impact your
business operations?
Yes, I have numerous stories of how developing friendships
and networking with captive members has benefited
my company. I met Roger Bettis, owner of Green Lines
Transportation, about 10 years ago. Roger had a customer
with freight going to multiple geographic locations, some
•••••
I would tell
anyone considering
these programs to
talk to current
members.
•••••
of which Green Lines did not service. We provided capacity
to those regions and have been growing our business
with him ever since. We have also provided business
to or received business from multiple other members.
The relationships go beyond revenue-sharing. We also
exchange best practices, help each other with breakdowns
and support our philanthropic efforts. Basically, we develop
interlocks with like-minded, conservative, philanthropic
people – united by the industry we are in through the
National Interstate captive model.
What would your advice be for anyone
considering joining the program?
I would tell anyone considering these programs to talk
to current members. Talk to some of the agents that
National Interstate partners with – they know trucks and
they specialize in an industry and product that requires
specialization. Also, stop in and visit the Richfield offices
and interview some of the loss folks and product managers.
They always have their doors open for you to do that.
12

MEET YOUR
CAPTIVE TEAM
GEORGE SKUGGEN
Senior VP of Transportation
george.skuggen@natl.com
800-929-1500 x1142
TRACY HICKS
Senior Marketing Manager
tracy.hicks@natl.com
800-929-1500 x1383
CHRIS MIKOLAY
VP, National Accounts &
Truck Alternative Risk Programs
chris.mikolay@natl.com
800-929-1500 x1407
NICOLE RICKETT
Business Development Manager
nicole.rickett@natl.com
800-929-1500 x5867
JOSH STOLL
Director, Truck Alternative Risk Programs
josh.stoll@natl.com
800-929-1500 x1316
JODY JORDAN
Business Development Manager
jody.jordan@natl.com
800-929-1500 x1556
JEFFREY STEWART
Assistant Product Manager
jeffrey.stewart@natl.com
800-929-1500 x5447
13

Products
and Services
Risk Management
Website
As a member of Venture, Voyager or
Velocity, you’ll have exclusive access
to a variety of products and services
that are committed to helping you
maximize the profitability of your
organization through safety. We have
developed solutions and partnered
with industry-leading professionals to
provide you with the resources you
need to support your safety efforts.
14
Our Risk Management website is a convenient one-stop
shop for your safety and training needs. Access it for:
➼ Pre-Packaged Safety Meetings – Everything you
need to hold your own safety meeting from the
presentation (PowerPoint) to the quiz – all in an
editable format that you can personalize.
➼ Streaming Online Safety Videos – Enjoy unlimited
access to over 300 different safety and HR-related
videos (many in both English and Spanish). Some
include quizzes as well.
➼ Safety Library – Our online library has over 10,000
comprehensive and ready-to-use safety programs
covering management, training and recordkeeping.
The flagship of this library is the written safety
program and training materials following specific
OSHA standards.
➼ Training Presentations – Access recorded webinars
on various topics and voice-over presentations
that can be used for trainings, reviews and driver
meetings.
➼ Accident Kits – Order complimentary accidents kits
from our website.
➼ Safety Brake Newsletters – Print off as many of our
single-page newsletters as you need, and use them
for payroll stuffers or handouts at safety meetings.
We have over 100 topics that are just a click away.
➼ Online Training – Access deeply discounted
online training offerings through our partners,
AdvanceOnline.
➼ Driver File Guidance – Compiling the correct
information for your Drive DQ File can be confusing.
Our DQ File assistance feature makes it easy for you
to know what is required.

clarity in the event of an accident, they are immensely
useful in coaching and training the most valuable assets in
your fleet, the drivers!
Smith
System
Smith System is widely recognized as a leader in defensive
driver training and we have partnered with them to offer
their training for over 10 years. For members who have
Smith System as part of their service package, we pay the
tuition (up to two employees) to become certified (at the
discounted per person rate). This is a train-the-trainer class,
so the person you send will be equipped to come back
as your organization’s certified Smith System trainer. The
initial train-the-trainer class is a five-day long class where
attendees will not only learn the Smith System Five Keys
to Defensive Driving, but also how to proficiently teach the
Smith System to a driver. The certification lasts for two
years, after which time your trainer will need to recertify in
a two-day class.
The intuitive technology is designed to monitor driver
and passenger behaviors, and identify potentially unsafe
driving habits. AER technology can be utilized in your safe
driver education to train your drivers and provide real-life
examples of unsafe habits. Because AERs record both video
and audio, they may also serve as your defense during
litigation.
National Interstate partners with the following AER vendors:
➼ DriveCam/Lytx
➼ Idrive
Workwell
Automated Event Recorder (Aer)
Technology
Physical Abilities Testing (PAT) can help you make sure you
have the right employees in the right job. We partner with
WorkWell systems, Inc. to create a customized program that
enables our clients with workers’ compensation coverage
to successfully implement a PAT program to determine
if your employee or new hire can perform the physical
functions of his or her job. Implementing a PAT program
may also control your worker’s compensation costs and
other expenses.
AERs are advanced risk management tools that can help
you to reduce risk, increase safety and as a result of safer
operations, could potentially increase bottom line profits for
your fleet operations. Systems may record continuously by
triggered event or a combination of both, and many AERs
offer both inside and outside views. Through its affiliate,
Safety, Claims and Litigation Services, National Interstate is
proud to fund a portion and support the use of Automated
Event Recorders. These cameras not only help to provide
15

BY THE NUMBERS*
We believe our members are exceptional, and the numbers support that. We look forward to seeing our
members continue to thrive.
Ac
tive
Ri
sk
MEMBERMBER
ERS 878
Sharin
ing*
g* .31%
To
tal
Premiumm iums
$72M
Invest
stme
ment
Income
$4.6m
me
REVENUE
2014
2015
2015
2016
2016
2017
2017
2018 Total
Loss fund premiums written $ 35,612,222 $ 34,989,798 $ 34,803,180 $ 30,804,808 $ 136,210,008
Loss fund unearned premium $ - $ - $ - $ 18,133,414 $ 18,133,414
Loss fund premiums earned $ 35,612,222 $ 34,989,798 $ 34,803,180 $ 12,671,394 $ 118,076,594
Loss fund assessments $ 3,702,182 $ 1,734,731 $ 1,969,276 $ 245,143 $ 7,651,332
Net investment income $ 1,862,620 $ 1,478,381 $ 1,040,479 $ 209,244 $ 4,590,724
Total revenues $ 41,177,024 $ 38,202,910 $ 37,812,935 $ 13,125,781 $ 130,318,650
EXPENSES
Loss and loss adjustment expenses $ 28,068,105 $ 22,298,788 $ 17,911,019 $ 2,127,082 $ 70,404,994
Case reserves $ 1,892,918 $ 4,203,453 $ 7,648,528 $ 4,220,537 $ 17,965,436
Incurred but not reported losses $ 3,058,803 $ 5,368,773 $ 9,215,938 $ 6,177,125 $ 23,820,639
Total expenses $ 33,019,826 $ 31,871,014 $ 34,775,485 $ 12,524,744 $ 112,191,069
Provisional net income (loss) $ 8,157,198 $ 6,331,896 $ 3,037,450 $ 601,037 $ 18,127,581
*As of June 2017
16

RETURN OF
EQUITY
Venture, Voyager and Velocity operate on a three-year
accounting cycle, whereupon we return the unused loss
fund dollars to members in positive equity positions. Over
the last year, we’ve returned $7.1M and since the programs
incepted, we’ve returned over $46.3M to Venture, Voyager
and Velocity members.
17

Recap
OF
PAST ADVISORY
BOARD MEETINGS
One of the cornerstones of a successful group captive
program is the advisory board meetings. Meetings are
required and held twice a year, and at each meeting the
members discuss the state of their insurance program:
financial performance, upcoming commutations,
investment yields, prospective member evaluation, risk
management updates and best practices reviews, among
other things. Of course, each meeting makes time for some
fun and camaraderie. Since each participant has a lot in
common, time is spent collaborating (often over a cocktail),
sharing industry updates and many friendships are formed.
At our Aruba and Grand Cayman Advisory Board Meetings
for Venture, Voyager and Velocity, we had the privilege
of doing all of the above in addition to hearing from two
exciting presenters. Dave Mitchell, author of The Power
of Understanding People, taught the members how
the various types of personal interactions we have on a
daily basis can impact relationships and ultimately make
one a better leader. Dave made the group both think and
laugh, and a fair amount of time was spent analyzing
individual interaction styles. Jim Olson, former CIA Chief
of Counterintelligence, author and real-life inspiration for a
Tom Clancy thriller, spoke on the challenges facing global
intelligence agencies today. He also shared his undercover
career including how he was recruited, the training he
received and the risks he and his wife faced (she was also
a CIA operative).
As always, members had a day on their own to enjoy some
fun and sun, exploring the islands.
18

Schedule of Upcoming Events
VENTURE:
March 1-3, 2018: Spring Advisory Board Meeting | Cape Coral, Florida
October 5-6 2018 Fall Advisory Board Meeting | Portland, Maine
VOYAGER:
February 8-10, 2018: Spring Advisory Board Meeting | Key Largo, Florida
September 12-13 2018 Fall Advisory Board Meeting | Park City, Utah
VELOCITY:
February 8-10, 2018: Spring Advisory Board Meeting | Key Largo, Florida
August 20-21, 2018: Fall Advisory Board Meeting | Cleveland, Ohio
Spring Safety Workshop: April 23-24, 2018 | Cleveland, Ohio
Fall Safety Workshop: October 15-16, 2018 | Las Vegas, Nevada
“The environment that
National Interstate creates
to help you openly dialog
with other similar-sized
carriers about safety culture,
best practices and current
industry challenges is
invaluable as a
business owner.”
Jake Conrad, Managing Partner
LJ Beal and Son Trucking
19

3250 Interstate Drive
Richfield, Ohio 44286
phone 330-659-8900
800-929-1500
fax 330-659-8901
www.natl.com