Why More Fleets Are Looking at Captives

To understand why captives and alternative risk structures are drawing so much attention from fleets right now, it helps to start with an uncomfortable fact about the insurance industry itself: commercial auto liability hasn’t been profitable on an underwriting basis since 2010, when the loss ratio came in at 97. 1%. That’s a razor-thin 2. 9% margin . So how do insurance companies stay in business?