Commercial insurance rates are dropping dramatically and will continue to do so in 2015, according to a recent report from Willis Group Holdings.

Just a few years ago, agencies viewed professional employer organizations (PEOs) as competition. But recent changes have positioned them as potential collaborators.

Based on purchases over past year, the average firm is worth 2.2 times revenue, not 2.8, Cerulli says.

In this dynamic environment, risk managers can take steps to improve their captives profitability, essentially by reducing operating costs.