Too many insurance agencies ignore captives. This is an increasingly risky strategy, as their clients may be looking to get into this market. If their existing agent or broker cannot help them make the move, clients may look to a competitor who can, say Jeremy Colombik and John Dohn of MSI.
The hardening market has encouraged commercial property companies to reconsider their insurance arrangements. Captives offer numerous advantages that can translate to better or cheaper coverage, says Gary Osborne of Risk Partners.
For the first time in a long while rates are on the rise across almost all classes of business. Although it may not seem like it to the insurance buyer, many insureds have long been beneficiaries of an artificially soft market. Now, SMEs are assessing their options, and there are several potentially attractive ones in the captives space, says Nate Reznicek of CIC Services.
Vermont is in the process of updating its captive insurance regime, with a bill currently being considered by the legislature that will make a number of tweaks designed to make it easier to do business and increase transparency. David Provost and Ian Davis talked about the bill with Captive International.
With continued reports of double-digit rate increases for some coverages, companies are looking to analytics to leverage their position with insurers and create new strategies for dealing with a hardening market, say Sigma’s Lori Ussery and Michelle Bradley.
The Internal Revenue Service has scored some notable victories against abusive micro-captive insurance tax shelters in recent years, with settlement offers to some 200 captives last September earning it floods of cash from captives eager to end their uncertainty. For those that did not receive such a letter however, the 831(b) scandal is far from over, as Solomon Teague reports.
A captive can be a useful tool to help a company manage its risk, but they are not suitable for everyone. Scott Bailey from Carr, Riggs and Ingram outlines some of the factors prospective captive owners should consider before taking the plunge.
It may come as a surprise to many insurtech companies, but it is probably easier to build a captive insurance company than to partner with a commercial provider. The insurance industry is awash with outdated firms, IT systems and business practices, which often makes it an ineffective partner, says Zach Finn of Butler University.
The commercial insurance model is a zero-sum game between supposedly collaborating insurers seeking competitive advantage with the end customer. Owning a captive puts the insured at the heart of the value chain, dramatically changing the product-service dynamic, says Allan Rodrigues at Captive Insurance Solutions NZ.
Active shooter/workplace violence insurance programmes vary widely. In the last of a four-part series about the impact and aftermath of an active shooter event, Paul Marshall of McGowan Program Administrators outlines 11 things companies should look for when considering which policy to buy.