From: Business Insurance
Captive owners should ensure they provide accurate data and be ready to compromise on collateral to maximize their rate negotiations with fronting insurers, experts say.
While insurers often impose steep collateral requirements when captives are formed, they usually relax the conditions as the captives build capital, they say.
But all captive owners using fronts should be prepared to demonstrate the strength of the resources behind the vehicles, including reinsurance, they say.
The experts were speaking last week during a panel session at the Captive Insurance Companies Association 2024 International Conference in Scottsdale, which attracted 659 attendees from 44 states and 43 offshore and international domiciles.
