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Maersk establishes captive insurance company
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November 24th, 2014
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Shipping giant saves 600 million kroner by taking over its own risk management
Maersk has joined a large number of companies and established its own insurance company to handle its own risk management. Doing so allows the company to cut its insurance costs by one third, saving 600 million kroner annually.
“We have a great balance, so we absorb a lot of risk on our own,” Lars Henneberg, the head of Maersk Insurance and risk management within Maersk Group, told Berlingske.
“We do not have to pay an additional premium to an external company.”
Other major Danish companies like Carlsberg, Danish Crown, TDC and Lundbeck have established their own in-house operations – so-called captive insurance companies.
Growing trend
Captive insurance companies are insurance companies specifically established to insure risk emanating from a company’s parent group or groups. They sometimes insure the risk of the group's customers.
This alternative form of risk management is becoming more and more popular as a means through which companies can protect themselves financially while having more control over how they are insured.
READ MORE: Maersk sells stake in Dansk Supermarked
“Following the financial crisis, it dawned on companies that they have to focus more on risk management,” Søren Andersen – a spokesperson at Willis, a risk management specialist – told Berlingske.
“They realised there are any number of insurance options, including captives.”
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