BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.
To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.
To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.
SAN DIEGO — A significant majority of global companies that use captives or multinational pools to cover employee benefits risks achieve positive financial results via the arrangements, according to a study by Willis Tower Watson P.L.C.
And using captives to provide coverage for benefits risks can add to the risk management advantages of using a captive, speakers during a session of the Captive Insurance Companies Association International Conference in San Diego said Monday.
Kathleen Waslov, Boston-based senior vice president with Willis Towers Watson, said the firm’s recent survey of 200 global companies using captives or international pools to cover benefits risks showed that 72% of the companies had “positive results.” According to the survey, released this month, the average profitability of the programs was 8% of premium.
The trend to cover benefits in captives – which can include life, accident, disability, medical and some retirement plans – has extended to many industries and brands, including The Coca-Cola Co., Dow Chemical Co., Nestle S.A. and Sony Corp., she said.
Stockholm-based Assa Abloy A.B., which manufactures automated doors and locks and employs 47,000 workers worldwide, including 9,400 in the United States, is considering covering employee benefits via a captive, said Fredrik Finnman, group risk and insurance manager. Mr. Finnman provided an at-a-glance look at the company’s risk model, which include captive coverage for most of its risks including its most expensive: product liability and business interruption.
“We see the lower costs, improved governance, and improved risk management … these provide motivations,” he said.
“The time is right (for employee benefits),” he said, noting the risk management and human resources department are discussing the possibility.
Employers say improving claims data was the key driver that led them to fund employee benefit risks through their captive insurers, according to a survey released Wednesday.