From: Captive International
An increase in the number of global insurance claims is putting increasing strain on the world of insurance – but captive insurance could offer a solution.
That’s the view of David Liptz, CPA Principal at Liptz & Associates. He pointed out that a worldwide population growth along with climate change, is resulting in more insurance claims – in terms of frequency and severity – driven by many factors including wildfires, hurricanes, and flooding. These, in turn, trigger other claims including supply chain interruptions, and shortages of food and power.
“The number of claims that are coming into the commercial marketplace are very expensive. We see some carriers thinking that there’s no way they can pay everything. This is what business owners are also thinking across the world.”
According to Liptz, this creates an opportunity for the captive market. As bad as all these claims have been, they can also become a catalyst for entrepreneurial solutions.
He said that the issues lie in convincing more entrepreneurs that they need to focus on how to finance the rainy days.