From: Captive Insurance Times
How should captive insurers navigate economic headwinds, seize investment openings, streamline operations, and address heightened regulatory oversight? Scott Kurland of SS&C Insurance Solutions, Jason Flaxbeard of Brown & Brown and Mikhail Raybshteyn of EY give advice for the year ahead
As we look ahead into 2024, what are some of the biggest economic and market-related trends that you believe pose the biggest risk to captive insurers, particularly as it pertains to their investment activities and portfolios?
Jason Flaxbeard: This year will be another growth year for captives, although it may be less dynamic than the past couple of years due to some market softening.
Once a captive assumes a particular risk — and the captive parent has agreed that that particular risk fits within the corporate appetite — it seems unlikely that the particular risk will ever make its way back into the risk transfer market.
Captives will increase in size, becoming more complex and diverse. They will form a central part of the risk strategy for their owners as they expand.