From: Captive Intelligence
Captives should no longer be considered an ‘alternative market’, with the volume of premium and assets under management carried by self-insurance subsidiaries demanding they be viewed as a market in their own right, according to Paul Phillips, partner and global captive network co-leader at EY.
Speaking on a GCP Short with Lisa Wall, executive vice president and risk finance practice leader at Lockton, Phillips discussed the growing prevalence and sophistication of captives, pushing the envelope further with clients and how they may be used to insure ESG-related risks.
“One of the things I’ve been saying on my stump speeches is captives are no longer an alternative market,” Phillips said. “They are in their own right, a market.”
According to data collected by Captive Intelligence, there is more than $100bn in premium written through captives domiciled in the United States alone, while it is estimated 90% of the Fortune 500 own at least one captive insurance company.
Phillips said he is seeing captive owners increasingly explore and push the boundaries of the types of risks they insure through a captive.
“There’s no doubt that we’re seeing new product getting deployed into captives routinely, no doubt that people are becoming more creative around what types of business risks may be insurable, that they can drop into their captive,” he explained.