September 15, 2004
Agriculture co-ops form captive insurance company
Twenty-three agriculture co-ops recently formed their own offshore-based captive insurance company - a form of self-insurance - to better control their liability, auto and property insurance costs. The company, Pillar Insurance Ltd., is believed to be the first captive formed by agriculture co-ops nationally.
"We have seen our property and casualty premiums skyrocket in the last five years to the point where it's absolutely out of control and beginning to have a devastating effect on our company," said Jeff Neilsen, chairman of Pillar. "We had to do something about it."
Posted by Tom Troceen