Companies Turn to Captives to Ease Rising Workers' Comp Costs

As workers compensation continues to see poor underwriting results, more companies turn to captives to combat rising costs, a Marsh executive says.

As the workers’ compensation line continues to experience poor underwriting results and strong momentum toward rate increases, more companies are turning toward forming captives to combat rising costs, a Marsh executive says.

Speaking yesterday during a Webinar to discuss the Marsh Global Insurance Market Quarterly Briefing, Jonathan Zaffino, leader of Marsh’s U.S. Casualty Practice, noted that workers’ comp remains one of the few casualty lines still experiencing a significant pull on rates. This line, he notes, “has experienced another difficult year in 2011” with a combined ratio of 115, the worst seen since 2001, and the third straight year the line has led all commercial lines with the highest combined ratio.

Originally published on PropertyCasualty360. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.