Risk Retention Plans Appeal to Some Trucking Execs
Low-Cost Alternative Makes Member Financially Responsible for Share of Group’s Losses
Two years ago, Ronald Inberg, managing director of Marsh USA, a New York-based insurance brokerage firm, had a hard time convincing a group of trucking executives to pool their resources and form their own insurance company.But now with premiums rising sharply and truckers finding it increasingly difficult to get coverage, the decision to form a captive, or risk retention, group is paying off big time. In a captive group, each member is financially responsible for a share of the group’s losses.“I’ve added four carriers in the last few months and 10 want to get in,” said Inberg, who helped set up Fleet Solutions in late 2000 in the Cayman Islands. Marsh USA capitalized on the captive group but retained no ownership and has no direct involvement in its operations.i>For the full story, see the Jan. 14 print edition of Transport Topics. Subscribe today.
