From: Captive International
Pro Group is keeping a watchful eye on the hard market’s impact on the captive sector – and how companies that own captives are adjusting their strategies to deal with it.
Speaking ahead of the annual CICA conference taking place March 5-7 in California, Renea Louie, chief operations officer of Pro Group, told Captive International that business owners are being forced to take reductions in coverage and increases in premiums with little control.
She said that she continues to see commercial markets increase exclusions, cancel coverages all together and entirely pull out of markets with no alternatives. Natural disaster events, more sophisticated and damaging cyber-attacks, nuclear verdicts, inflation, lack of access to reinsurance markets all contribute to today’s environment.
Louie commented that well run businesses can head these challenges off at the pass, adopting captive strategies as part of their overall risk management plan. Captives allow total control, flexibility and can adapt as conditions change. Where companies need better answers, captives are there to respond.
She said that the captive industry is bracing itself for the hard market to last for several more years and captives will provide innovative strategies that will provide lasting solutions for years to come, adding that even in times of transition to softer markets, those strategies using captives will be stronger than ever.