Construction firms spend most on insurance
Construction companies spend the highest percentage of income on insurance, followed by transport then communication companies, according to a Swiss Re report.
Financial, trade and government sectors spend the least on insurance in relation to their revenues.
“Larger companies spend considerably less on insurance per revenue than smaller companies, even though they purchase significantly higher cover,” said Swiss Re.
The report said this is because larger corporates have a great ability to diversify risk and to apply more sophisticated risk management processes.
There are 93 US construction companies with captives, according to Captive Review’s Captive Insurance Database. This compares to 516 US financial services and insurance companies with captives, perhaps suggesting construction companies are less cost-effective in their risk management.