From: Captive International, Europe Focus 2022
The European captive insurance market has the foundations for continued growth, according to the Captive Insurance Companies Association.
Dan Towle, president of the Captive Insurance Companies Association (CICA), told Captive International that the European market has all the right building blocks for growth.
According to Towle, Europe now has multiple domicile options and an active captive insurance infrastructure of service providers. The continent also has businesses with a growing need to control and manage risks.
“The effects of the COVID-19 pandemic and the hard market have demonstrated the vital role of a captive as a risk management tool,” Towle added. “I am hopeful that these conditions, along with more options for cell captives, will make the captive market more accessible to a greater number of companies than ever before.”
He explained that European organisations that have been successfully using captives are now looking for ways to further enhance their ability to manage unusual or challenging risks. These captives serve as role models or catalysts for more businesses, including medium-sized organisations, to explore captive insurance as a risk management tool.
The COVID-19 pandemic and the hard market have demonstrated the vital role of a captive as a risk management tool.”Dan Towle, CICA
CICA describes itself as the only domicile-neutral captive insurance association, which makes it “uniquely positioned” to champion best practices, foster collaboration to increase understanding of the business reasons for captive insurance and develop a stronger, more impactful voice for the captive industry.
In addition, CICA partners with the European Captive Insurance and Reinsurance Owners’ Association (ECIROA) to protect the captive industry, Towle explained.
By collaborating, for example through submitting joint responses to the Organization for Economic Co-operation and Development or other regulatory organizations, CICA said that it is putting forward a stronger, unified voice on behalf of the captives industry. To enhance this collaboration, ECIROA’s board chair now serves on the CICA board of directors.