Auto OEMs accelerating their use of captives

Automotive original equipment manufacturers (OEMs) are increasingly turning to captive solutions for establishing their extended warranty and other insurance products.

That’s according to Marsh’s international affinity leader Phil Hobson, and Marsh Management Malta’s office head David Galea, who told sister publication Captive Review there had been at least a 100% increase in enquiries from OEMs about using captives in the last year and a half.

The uptick has resulted in Marsh’s affinity and captive teams working much more closely together.

“Two, three years ago, the level of conversation that the affinity business would have had with the captive business in Marsh would have been incredibly limited,” Hobson said. “Now all of our training for our client execs includes captive engagement because of the level of inquiry that we’re getting.”

Galea added that Marsh’s latest benchmarking and landscape reports “show a significant increase in the uptake of captives” and that many are now being leveraged to cover not only first-party risks but also to access pools of customers directly.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.