From: Captive International
The captive market has been impacted by a string of events, both in the US and worldwide, that have made many commercial carriers and entrepreneurs pause to figure out what their priorities are in risk management, capital investments, marketing, taxes, and operational innovation.
Speaking ahead of the annual CICA conference taking place March 5-7 in California, David Liptz, principal of Liptz & Associates CPAs, said some might come to see captives as a form of “risk management” meaning funds are available for uninsured and unforeseen events.
Liptz highlighted several unforeseen events including Covid 19, the Russian invasion of Ukraine, and the sudden uptick in inflation in many countries, as having had a particularly strong impact on some companies. He also underlined the unexpected nature of these events.
“[These companies] can react more quickly if they have their own insurance company, rather than waiting for a claims officer from a commercial carrier to arrive onsite to begin the claims process and provide a claim payment,” Liptz told Captive International.
He also pointed to other recent events such as the devastating earthquake that hit Turkey and Syria, the flooding that hit California and even the recent cold snap there that might impact the almond growers of Central California by damaging the almond blossoms and limiting the crop.