Captives have been commonplace among large corporates for over 40 years, but the hard insurance market has increased their relevance across more sectors and into the middle market.
As such, the formation of new captive insurance companies, as well as the increased use of existing captives by Airmic members has ensured their place on the agenda at the association’s October conference in Brighton this year.
“Captives have leapt up the corporate agenda due to various factors including hardening of insurance markets, emergence of new risks and global uncertainty driven by the pandemic,” said Peter Child, managing director of Strategic Risk Solutions in Guernsey.
Mike Johns, director at Willis Towers Watson in Guernsey, adds that rising rates, as well as restrictions in wordings and a drop in capacity had led to more captives being formed and existing ones being further utilised.
“These combined factors have led to corporate purchasers looking more intently at the insurance policies that they purchase and their own risk finance strategy, seeking to increase their retention levels to achieve a more cost-effective method to finance their risk,” he said.
Airmic’s major conference takes place in Brighton on 5th and 6th October. More details on Airmic's dedicated event website.
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