Captive owners gave a ringing endorsement of Bermuda yesterday – saying they would have no hesitation in picking the Island again.
Setting up a captive could save up to 15 percent on health premiums, according to a panelist at the Bermuda Captive Conference who is looking at using a captive to fund a manufacturing company’s benefits programme.
The key stages of a captive was the focus of a break-out discussion during the Bermuda Captive Conference with the audience told that a mature captive could almost act like a commercial insurer. Parent companies can generate profits from additional premium by underwriting third-party risks in their more mature captives.
Bermuda was one of only two jurisdictions to respond to inquiries from students to set up their own captive, the Bermuda Captive Conference heard yesterday.
With the hardening of the commercial insurance market for many lines of business, captives are being used more for either increasing retentions or new lines that were traditionally placed in the commercial market when it was softer.
The energy sector has seen an increased use of captive insurance over the last 5 years, as it continues to be a key part of companies' risk management strategies, according to an Aon report.
A managing general agency (MGA) can leverage a captive insurance company to enhance its performance and give it a competitive edge over other MGAs, and ultimately build a better relationship with the reinsurance market.
Former Zurich Asia captives head Sean Welsch has formed a new captive management company in Singapore.
European captive ratings have been stable through the past year, with most ratings affirmed and stable outlooks maintained, according to an AM Best report.
Willis Towers Watson has introduced a digital tool to help organisations analyse the financial feasibility and future profitability of their captive insurance strategies.