Captives Cite Troubles With Their Fronts
The number of insurers willing to serve as a front for captives is down, while the quality of fronting services is deteriorating and costs are rising for no additional value, an industry study found.
That is the grim picture for risk managers that emerged in a joint survey by the Minneapolis-based Captive Insurance Companies Association and the Vermont Captive Insurance Association, entitled: “The CICA 2002 Fronting/Risk-Sharing Survey.” The report follows up on last year's inaugural survey.
This year, 270 captive companies that are members of CICA and or VCIA were polled. These are mature entities, with the average age of the responding captives at 11.8 years, according to CICA.
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