Caterpillar sets up Bermuda captive, could create premium savings of 15%
Setting up a captive could save up to 15 percent on health premiums, according to a panelist at the Bermuda Captive Conference who is looking at using a recently established Bermuda captive to fund a manufacturing company’s benefits programme.
Darin Hinderman, global benefits manager - Caterpillar Inc, 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.
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.