From: Captive International
“Captives should structure, domicile and operate with a hard market mentality at all times, and take advantage of softening when they can,” according to Peter Rosiere, a vice president of risk management at Sodexo.
Speaking on a Captive Insurance Companies Association (CICA) webinar titled “Captive Strategies in a Hardening Market”, that would have been a panel at CICA’s annual conference in California in March, Rosiere warned his audience about the challenges of a hard market which, he noted, many people active in the industry today have never experienced.
“Those who have some experience of these market conditions will do well,” Rosiere predicted.
He stressed that the environment will put many established relationships under considerable pressure. “You find out who your friends are,” he said.
Rosiere advised captives owners to be prepared to regularly review relationships and strategies. “Old relationships and strategies may no longer work,” he said. “Everything should always be in play.”