SCOTTSDALE, ARIZ.--Fronting costs for captive insurers were 5 percent or less of annual premium for 59 percent of respondents, compared to 44 percent last year, according to a survey.
Conducted by the Captive Insurance Companies Association (CICA), the 2008 Captive Survey on Fronting, Reinsurance and Employee Benefits, presented at CICA's 36th Annual International Conference here, found that 26 percent of those polled reported fronting costs were 6-to-10 percent of annual premium, while only 2 percent reported fronting costs at 11-to-15 percent of annual premium.
The survey also found that respondents listing top challenges for captives had a dramatically increased concern about service issues, which rose from about 12 percent in last year's survey to 36 percent in 2008.
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