From: Captive Insurance Times

Captive insurance will play an even more important role with the potential new developments from President Joe Biden’s new administration as the US Government rolls out potential new legislation and focuses in the space, according to Mikhail Raybshteyn, partner at Ernst & Young (EY).

Raybshteyn’s comments were made on a panel at World Captive Forum ‘Captive Market Trends: US Election Results and What’s Next for Captives and Their Owners’ panel.

On the panel, he explains that Biden’s administration proposals surround a number of areas including healthcare quality, climate, boosting certain manufacturing, boosting US productions, and potentially raising taxes.

Raybshteyn notes that Biden’s priority will be boosting manufacturing and increasing demand for US products with energy efficiency appliance upgrades, electric vehicles workplace child care facilities, and various other areas.

Although these areas may not particularly drive captives, Raybshteyn highlights these areas will bring additional risks and will bring the need for potential additional coverage.

He adds: “If we look at what companies are doing now and some that are already using their captive pretty efficiently to cover those coverages may be expanded.”