Captive market game not working3/24/2024 ![]() Grant Maxwell: Supporting captives is a key focus are for us going forward. The benefits are well-known: stable pricing, access to a higher level of capacity as well as to reinsurance and alternative capital markets and last but not least, a strong commitment to the insurance market to really have skin in the game by self-insuring a proportion of the risk. The hardening market will make it easier for risk managers to show the value of any captive structure to their CFO.Others become more creative and keener to experiment, for example with cat bonds. In addition, they can increase retentions to show insurers they have trust in their risks and data or because lower layers are not available in the market. We also see other risk managers expanding existing programs – both in terms of higher volumes or new risks such as Cyber or D&O. More companies are evaluating the option of establishing a captive or putting dormant captives back to use. Global Broker Marsh saw more than 100 formations of all types of captives in 2020 and there's no sign the trend is slowing down in 2021. ![]() Grant Maxwell: Captive insurance use increased dramatically. ![]()
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