From: Captive International
“Challenging” is the first word that comes to mind when describing today’s market, according to Dan Towle, president of the Captive Insurance Companies Association (CICA), speaking ahead of the annual CICA conference taking place March 5-7 in California.
Towle told Captive International that insurers and risk managers are dealing with rising premiums in the commercial market, ongoing business disruption from supply chain problems and increasing cyberattacks – plus more challenges.
“It is more important than ever for risk managers to be able to proactively support their organisations’ changing risk financing needs – versus simply being reactive,” he said. “We all have to stay on top of our game to deal with the rapid pace of change.”
According to Towle, a hard market arrived before the pandemic – and he believes it will last well beyond 2023. Add to that a slow recovery from the pandemic, volatile financial markets, and the war in Ukraine, and the ingredients that drive captive formation and expansion are all present. The combined effect provides the ideal opportunity for captive insurance to shine.