Artex Risk Solutions unveils captive formation white paper
Artex Risk Solutions has issued a new white paper to help prospective captive owners navigate their way around the market.
Artex said that the white paper, ‘Navigating the Captive Industry Through the Lens of a Broker’, has been written by industry experts Chelsea Carter and Ryan Santacrose to dispel popular captive myths, highlight the latest trends and considerations, and ultimately help brokers answer the question, “is a captive solution right for my client?”
According to Artex it's no surprise to most insurance professionals that the current insurance marketplace has become increasingly distressed in recent years. The company pointed out that the third quarter of 2022 marked the twentieth consecutive quarter of commercial property and casualty premium increases, with average increases of 8.1% across all account sizes. Furthermore, double-digit increases continued on particularly distressed lines such as commercial Property at 11.2% and Cyber at 20.3%.1
The white paper lists the ongoing fallout related to the Covid-19 pandemic, climate change, the increase in nuclear verdicts and litigation costs, and inflation as having all played a role in driving rate increases. The global risk environment is arguably more complex, uncertain and volatile than it's been in recent decades.
“Captives have been increasingly attractive to companies and organizations as they face decisions around how to retain vs. transfer more risk, access additional capacity and achieve greater stability over the long term,” said Artex. “As insurance brokers navigate these decisions with clients, they must understand when and how to deploy a captive strategy as an effective alternative and how to appropriately set expectations with clients.
To get the whitepaper contact Artex Risk Solutions.