From: Captive Review
Speaking to Captive Review on the eve of the CICA conference, Dan Towle highlights the importance of industry collaboration as the captive industry looks to “evolve responsibly”
Captive insurers are evolving and increasingly being used as proactive strategic risk management tools rather than simply alternative risk financing vehicles, according to Dan Towle, president of the Captive Insurance Companies Association (CICA).
Speaking to Captive Review on the eve of the annual CICA conference, Towle said the sector is now entering a period of greater visibility, opportunity and heightened scrutiny as more organisations in the US and global captive markets look at captives for more than balance sheet efficiency.
Having “proven their value over many decades”, Towle said that during this period the industry must continue to demonstrate strong governance and the responsible use of captives, “ensuring the industry continues to evolve responsibly as the global risk landscape becomes more complex.”
“Captives are increasingly being used as strategic risk management tools rather than simply alternative risk financing vehicles,” Towle said. “Organisations want greater control over volatility, improved access to claims data, and more flexibility in managing capital.”
He added that globally there is increased adoption of cell and group captive structures, as well as more collaboration among domiciles and regulators. At the same time, there is growing interest in using captives to address emerging risks and support broader enterprise risk management strategies.
