Funding Benefits through Captive Insurance Companies Continues To Grow
From: Captive.com, November 15, 2017
Hyatt Hotels Corp. is the latest employer to win federal regulatory approval to fund employee benefits through its captive insurance company, and more companies are certain to follow.
Under Hyatt’s proposal, approved by the US Department of Labor last month, the huge hotel chain will use, starting next year, its Arizona-based captive, Xenia Assurance Co., Inc., to reinsure Hyatt life insurance and short-term and long-term disability policies written by Metropolitan Life Insurance Co.
Those coverages will join other risks—auto liability, general liability, employment practices liability, crime, property, and workers compensation—Hyatt now funds through its 4-year-old captive.