From: Captive Insurance Times
Although this year has been difficult for many, it seems 2020 has been favourable for the captive insurance market. Industry participants reflect on this year’s trends and challenges
It’s 00:01 on 1 January 2020, you can hear the sound of champagne glasses clinking as people hug and kiss each other while the dark midnight sky is lit up in artificial colours from the hundreds of fireworks being launched into the cold air.
As laughs and intoxicated singing echoes through the streets and music rings out from nightclubs, nobody could have imagined what was in store for the world throughout 2020.
COVID-19, a deadly virus that shut the world down in March as government officials across the globe were forced to implement national lockdowns in order to contain the spread of the virus and to not overrun its healthcare services.
Due to the actions taken in order to protect people, the unemployment rate continues to surge as millions of people around the world continue to lose their jobs and businesses, with hospitality and travel being the most affected.
Even though 2020 has been a difficult year overall for most everyone, for the captive insurance industry it seems 2020 has been favourable.
Belinda Fortman, director of captive programmes for the Tennessee Department of Commerce and Insurance (TDCI), says that 2020 has been “a banner year for the captive industry”.
The hardening of the insurance market has driven companies to seek alternative methods for financing their risk.