The survey results captives are playing an increasingly strategic role in assertively managing insurance and employee benefit costs, according to a press release. A captive is an insurance company formed exclusively to insure (or reinsure) the insurance risks of its parent corporation. That is major Fortune 500 corporations will set up a captive of their own in order to better control – and minimize – their own insurance bill.
The press release said that although captives’ strategic importance is growing, many still lag in the area of benchmarking, with only 45% using benchmarks to manage operations. The most commonly used benchmarks are reserves to surplus (31%) and premium to surplus (32%).
Considering the future of captives, 39% of survey respondents indicated concern about tax regulations.
For a complete copy of survey results, call 617-589-0930.