The COVID-19 pandemic has taken a heavy toll on Compass Group, the contract catering business. When the virus struck the company was in the process of overhauling its insurance and risk management strategy, and now an enhanced role for its captives may position it well for future challenges. Captive International spoke to Compass Group's Scott Feltham.
Parametric insurance is generating a lot of attention as a flexible and cost-effective alternative to traditional forms of insurance. Captives offer a good way for companies to access this type of insurance, says Sigma’s Lori Ussery.
COVID-19 has destabilised the global economy and increased risk across all types of business. Run-off solutions can help captives better manage these risks, say Steve McElhiney of Artex and Carolyn Fahey of AIRROC.
The consensus of the insurance industry is that pandemic risks are uninsurable. This is probably correct, at least where the business interruption exposure is concerned, but not for the reasons that are commonly cited, says Greg Lang of the Reinsurance and Insurance Network.
The real estate industry faces a number of significant headwinds. An increasing number of property managers are looking at tenant liability captive insurance programmes to help them navigate these turbulent times, says Bradley’s Davis Smith.
Captives can be used creatively to reduce the impacts of a hard market. Oliver Schofield and Damian McNamara of RISCS discuss how, and consider how captive use will expand in Asia in 2021 and beyond.
Sub-Saharan Africa’s economy has taken a considerable hit from COVID-19 and the resulting global shutdown, underlining the need for businesses in the region to be able to better manage their risk. Cell captives could offer an attractive solution, say Cenfri’s Matthew Dunn and Jeremy Gray, and Ernie van der Vyver of Clyde & Co.
Greg Lang of the Reinsurance and Insurance Network’s third article in a series on the future of work examines the informal economy, where business is neither taxed nor monitored by any form of government.
The availability of cheap insurance from commercial providers has prevented airlines from leaning too heavily on their captives. However, rates have been increasing, and with the outlook for the global economy looking grim, airlines are looking for creative ways to cut costs and improve risk management. Captives can help them with that, as Captive International reports.
The alternative risk market has always been creative and responsive to “uninsurable” events, but the COVID-19 pandemic is revealing risk in unexpected places, and challenging old notions about what does or does not constitute insurance. Captives have a real opportunity to step up and help businesses navigate the changing risk landscape, says Gary Osborne of Risk Partners.