Manufacturing company Caterpillar has set up a captive insurance subsidiary in Bermuda, which could save it up to 15 percent on health premiums, according to Darin Hinderman, global benefits manager, speaking at the Bermuda Captive Conference.
Caterpillar Insurance Co was licensed as a Class B insurer on April 2, according to registration statistics from the Bermuda Monetary Authority.
Hinderman was speaking during a discussion on Global Employee Benefits: Elevating through Captive Programmes. Other panelists were Paul Mielke, of Maxis, and Elizabeth Fields, of the Generali Group.
Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Hinderman is part of Caterpillar’s global benefits and wellness teams. Caterpillar has been looking at funding its benefits programme through a captive for some time now.
Hinderman said a captive would help with global governance, bring in more central control and give greater plan design flexibility. He said Caterpillar was planning a three-year implementation.
“It will reduce the cost of providing benefits to employees. The feasibility study said there would be annual savings of ten to 15 percent of premiums. It will also have minimal impact on our employees,” he said.
Bermuda Captive Conference, Caterpillar, Maxis GBN, Generali Group, Health, Benefits, Bermuda