Current market conditions may provide a turning point
“It is clear the organisations that have not considered captive insurance are missing out.”
Dan Towle, CICA
I believe we may very well look back at this period in time and say it was a turning point for the captive insurance industry. The captive market has grown in significance to where it is getting the attention of more risk managers and business owners. Further, it’s clear the current hard market, increased pricing, less capacity in the commercial market, and the volatility of the financial markets are likely to continue.Add to this a company’s desire to have greater control over its risk management and we are seeing the “perfect storm” for the captive insurance industry, where captives are firmly on the front-burner for every risk manager.I experienced the growth spurt in captives that occurred after 9/11 in the early 2000s, but this growth trend is different. It is stronger. This is not companies simply finding a solution to an immediate problem. Captives have become considerably more strategic with a much longer vision.If the COVID-19 pandemic taught us anything it is to expect the unexpected. It also showed us as an industry the vulnerability and the necessity of having proper insurance coverage. Today, sometimes that coverage can be found only by having a captive insurer. This fact has been magnified by the current market conditions and it is aiding the growth we are seeing.It is clear the organisations that have not considered captive insurance are missing out and will soon be falling behind their peers that have them.
Improving perceptions
As awareness and the size of the captive insurance industry grow, more companies will understand the business purpose and true risk management benefits that a captive brings to its organisation. I anticipate that this greater utilisation will help us to overcome the persistent negative perceptions about our industry.As the captives industry becomes a more significant part of the commercial market, we will have a broader knowledge of captives and that is a positive outcome.The Captive Insurance Companies Association (CICA) has a long history of advocating for captives of all sizes, and for having them formed for the right reasons and properly operated using industry best practices.Most captives support this position, but we need more of our industry to be vocal in this support. Now is the ideal time to publicly share stories about successful captives, their case studies for the formation and ongoing operations, and to present them at industry conferences.
Strengthening the sector for the future
Addressing today’s market needs is about more than growing the use of captive insurance. We also need more captive professionals to help keep up with the continued growth across all of our professional services. It is more important than ever to continue to promote the dynamic nature of the captives industry and the career opportunities it provides.We need to increase our efforts to make the captive insurance industry a place where everyone feels welcome, the kind of environment today’s young professionals are looking for. Whether it is the diversity of the speakers at our CICA Conference, or the events our NEXTGen and Amplify Women programmes are providing throughout the year, a welcoming environment is a key to our future.CICA’s increased efforts to provide a welcome environment were evident at our conference this year. We were proud to have had 42 percent women speakers and our first-ever diversity equity and inclusion keynote speaker, Nick Ashburn. These cultural and social responsibility changes are essential to attracting the best and brightest young professionals who will help deliver the captive insurance solutions organisations will be looking for in the future.CICA has created an industry-wide conversation about attracting a robust talent pool and the importance of professional development for the next generation. By offering more than just industry education, CICA’s College Student Essay Contest, NEXTGen, Amplify Women, and Mentorship programmes are providing many opportunities.Participants can network, gain social recognition and build career skills. Opportunities have included speaking at conferences or to the media, committee work, serving on boards and other professional development activities.
“CICA has created an industry-wide conversation about attracting a robust talent pool.”
Education, networking and opportunities go hand-in-hand. Through our College Student Essay Contest, students are learning about the challenging work the captive industry offers. Our NEXTGen webinar series is very well attended and receives great reviews for the risk management and career development insights the speakers provide.Through CICA’s Amplify Women initiative, we are focusing on representing women in educational opportunities such as speaking at conferences, publishing articles, teaching, and academic partnerships. We are also addressing opportunities for influence such as serving on captive association and industry boards.We are pleased to see these efforts are showing results. This year several of our essay contestants received job offers in the captives industry as a result of participating in the contest and presenting at the CICA Conference. Two of them are now working in the sector.We are hearing these programmes are making a difference in the industry. Not only are they providing professional development, they also emphasise workplace culture and opportunities for all. I have heard anecdotal stories such as an organisation reassessing incoming board candidates to make sure they were bringing women and diverse perspectives on to the board directly as a result of CICA’s initiatives. Other captive conferences are taking steps to have more young professionals and women as speakers, which is another positive outcome.
Continuing captive education
Providing education on captive best practices and fostering connections throughout the industry is one of the cornerstones of CICA’s value to our members and the industry. CICA’s membership and our annual International Conference continue to grow and adapt, making the CICA Conference the place where captive business happens.It is exciting when you bring together such a talented group of professionals in our domicile-neutral environment because these are the individuals who can share the best practices people need today and those who will help shape the future of the captive industry’s continued growth.I look forward to hearing from you as CICA and the captive insurance industry move forward to a bigger, more vibrant future.
