CAPTIVE BENCHMARKING

Released last week at the 2014 RIMS Annual meeting, the Marsh report contains a lot of interesting information regarding captives.  Some of the benchmarks included were:

  • 66% of the total captive count are single parent captives
  • Of the captives treated as insurance companies for tax purposes, 47% use a “brother/sister” approach, 42% use third party risk, and 11% use a hybrid of the two approaches.
  • Of the non-traditional coverages written in captives, crime insurance tops the writings, with medical stop loss or another layer of a self insured health plan also growing in popularity.

See the press release and article here:

“Majority of US-Owned Captives Not Generating Tax Benefits: Marsh”- Article written by Marsh on Tuesday, April 29, 2014, Article posted by The Wall Street Journal on Tuesday, April 29, 2014

(http://online.wsj.com/article/PR-CO-20140429-915886.html)

 

And the full report:    “The Evolution of Captives: 50 Years Later” by Marsh USA published April 29, 2014:

http://usa.marsh.com/NewsInsights/MarshRiskManagementResearch/ID/37880/2014-Captive-Benchmarking-Report-The-Evolution-of-Captives-50-Years-Later.aspx

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