New research from Willis Towers Watson says many employers are looking to captive insurance in order to mitigate costs and analyze claim data. (Photo: iStock)

Employers are increasingly turning to captive insurance as more than just a means to cut their bills for employee benefits.

That’s according to a study from Willis Towers Watson, which found that while the primary driver for nearly half (44 percent) of companies with employee benefits in their captive is to control and improve their claim data to help with ongoing cost management — up from a quarter (24 percent) in last year’s study — the percentage of companies that cited cost savings as the main driver actually fell, from two thirds (67 percent) in 2015 to 44 percent in 2016. (Typically a captive is a licensed insurance carrier created from a parent company, which insures to reduce the risk exposure of vendors or others that have a busines relationship with the parent company.)

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.