From: Captive International, US Focus
The captives industry has an excellent opportunity to showcase the value of captives to their parent companies, to educate the broader financial markets and to attract young talent, writes Dan Towle of the Captive Insurance Companies Association.
During the COVID-19 pandemic, captive insurance companies continued to prove a valuable means of providing coverage for pandemic-related losses, hard market rate increases and emerging risks. This elevated the important role captives have in many organisations, with more risk managers taking on a more valuable role.
Some of this started even before the pandemic and the hard market occurred. Organisations were putting more risk and new lines of business into captive insurance programmes to increase diversification while benefiting from stable pricing. One of the long-standing strengths of captives is their ability to offer an efficient means of covering these unusual and changing risks.
We all have a role in setting the record straight about the proper utilisation of captive insurance.Dan Towle, CICA
During this period of captive insurance growth, the pandemic accelerated adoption of technology which has introduced efficiencies across many sectors of the captives industry. The resulting information gathered can be useful in identifying areas where practices can be changed and improved to better manage the risks and reduce losses.
With the captive insurance industry having some of the strongest growth we have had in some time, we have an excellent opportunity to showcase the value of captives to their parent companies and to educate the broader financial markets. However, despite all of the positive growth of our industry, many negative perceptions about our industry persist.