13 January 2020Analysis

Energy captives slash frequency and severity of claims in a year

eMaxx’s captives programmes have delivered a 46 percent reduction in frequency and significant impact in the severity of claim outcomes, one year after the energy captive programs were created, the group has said.

The group captive programmes are for energy companies within fuel distribution, energy transportation, energy construction, renewable energy, agricultural cooperative and utilities segments.

The Vermont-domiciled group captive programmes offer auto liability, general liability, excess liability and workers compensation coverage with limits up to $5 million. They have over 85 members and over $43 million in gross written premiums.

eMaxx and its subsidiary eTech Services are attempting to change driver behavior over time, using telematics data gained through the proprietary Telematics Exchange platform and online learning through eLive Connect.

All captive members have adopted risk management technology programmes such as dash cameras, telematics and online training that are key elements in combating nuclear punitive damage judgments and commercial auto trends.

Michael Penza, president of both eCaptiv PC1-IC and Samuel Coraluzzo Company, said: “The investment in technology helps combat commercial auto trends and sets a specific standard for entrants into the group captives.”

“The combination of the risk management technology requirements, claims management and participation in the program governance have been key elements in driving the initial results,” added Sandra Farrell, president of eCaptiv PC2-IC and treasurer of Northboro Oil Company.

eMaxx Assurance Group of Companies, formerly known as Energi, acts as the program administrator and captive sponsor through a wholly owned Vermont subsidiary, eCaptiv.