(BOSTON, MA, October 2008) – Spring Consulting Group, LLC, which provides consulting services to employers and financial services organizations, released the results of their Captive Best Practices Survey.
The survey, which was based on a number of industry findings, including CICA’s Captive Best Practice Guidelines, was created as a baseline of where captives are today in the areas of business alignment, corporate governance and regulatory compliance.
The survey included primarily pure captives from the manufacturing, services, pharmaceutical and mining industries and tax-exempt organizations. Specific information about the survey participants was gathered and analyzed including captive premiums, years of operation, domiciles, type of captive, lines of coverage and benefits in a captive. Some key results of the study are below:
- 60% of survey participants have a captive manager on their board
- 31% of survey participants have introduced an Independent Director on their board
- 7% of survey participants are rated
- 25% of survey participants operate multiple captives
- Average years of operation totaled 12.6 years with a high of 35 years and a low of 8 months
- An average of 60% are or have considered using their captive for employee benefits funding
- Only 45% use benchmarks to manage operations
- The most commonly used benchmarks are Reserves to surplus (31%) and Premium to surplus (32%)
Survey participants were also asked their opinions on issue affecting the future of captives. The largest percentage of participants was concerned about tax regulations, while only 4% were concerned about the arising issue of Solvency II.
* Call (617) 589-0930 for a copy of the complete study.
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