Guernsey is seeing “massive” interest in captives but this is not yet translating into new launches, according to Peter Child, head of European operations at Artex and managing director of the Guernsey operation.
Risk managers have highlighted extreme and unexplained changes to rates and terms as a particular area of concern, in a survey of the industry conducted by Airmic, the trade association for risk and insurance professionals.
Wilton, the London-based professional service adviser, has launched Wilton Captive Services (WCS), offering consultative, turn-key business solutions for captive insurance and debt issuance for high net worth clients, private family offices and other professional entities.
The insurance market increasingly resembles that of the 1980s, one of the most challenging insurance markets in history for those buying insurance, according to Jim Swanke, senior director of captive consulting at Willis Towers Watson. And this could trigger a swathe of new captives being formed.
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.