Businesses and captives must share their stories to increase public understanding of the industry, according to the president of the Captive Insurance Companies Association (CICA), the only domicile-neutral captive insurance association in the US.
Speaking at the organisation’s Fall Forum conference in Arizona taking place this week, Daniel Towle said that the captives industry had continued to “grow and thrive” during the last couple of years, despite the challenges of the pandemic.
“To many of you, that won’t be a surprise. Captives have always been the go-to for creative solutions to fill coverage gaps in the commercial market,” he told the audience.
While many industries had been hit hard, captives had seen “phenomenal growth”, he added, with some of its members recording their best ever years. However, he warned against complacency.
“[A]t the same time, captive insurance remains an industry that continues to be misunderstood,” he said. Federal and local tax authorities applying rules in new and unexpected ways was one symptom of this.