As a challenging insurance market extends into 2021, manufacturing leaders are revisiting alternatives for managing enterprise risk cost-effectively. Manufacturers Alliance polled members to identify trends in captive insurance, including selection processes and applications in practice.
Key findings include:
- Captives getting a fresh look – rising premiums and reduced coverage levels are driving consideration of captives for about 1 in 4 manufacturing risk and finance leaders polled.
- 831(a) structures are most common and typically include general liability and property lines – more than half have moved previously self-insured coverage and/or high deductibles into their captive.
- Current insurance brokers are the go-to for many risk and finance executives – over half report their company selected their captive partner or primary broker through a current insurance broker. More than half also indicate that a captive feasibility study provided sufficient information needed to make the decision to go forward (or not) with the captive structure.