From: Captive International
The captive insurance industry is facing a wide range of challenges as delegates mass for the opening of the Captive Insurance Companies Association (CICA)’s annual conference, which this year is being held in Tucson, Arizona.
Anne Marie Towle, chief executive officer of Global Risk & Captive Solutions at Hylant, told Captive International that the insurance market continues to evolve, and identified key areas experiencing significant shifts. “We just put out our first quarter predictions with the overall insurance market, but how that ties into captives is really important,” she explained. While some lines of coverage are stabilising, others remain challenging.
One of the most pressing concerns is auto liability in the United States. “It’s still a deepening area,” Towle noted, attributing this to the rising importance of transportation and shipping. “Securing cost-effective auto liability and auto physical damage insurance is really important. So that’s a hot area.”
The construction industry is another focal point, with growing interest in risk financing solutions for companies ranging from sub-contractors to general contractors.
Property insurance, though slightly stabilising, remains a major concern, particularly in catastrophe-prone regions. “We’re not seeing the double-digit, triple-digit increases that we did, but it’s still very difficult for organisations to place property risk in cat-prone areas,” Towle said. Coastal regions, including the Gulf Coast, continue to pose a struggle, prompting businesses to explore alternative risk management strategies.
Employee benefits are another expanding area, particularly in global organisations. “Whether you’re looking at international benefits or focusing on medical stop-loss in the US, there’s more attention being paid to voluntary benefits as well,” she added. Organisations are increasingly adopting an enterprise-wide approach, integrating risk management and HR strategies for a holistic solution.
