A group of insurance industry executives has joined together to form Ten C’s, a startup that will develop parametric insurance for business interruptions and event cancellations due to pandemics and other systemic risks.
Regulation is important to Gemini Trust Company, the cryptocurrency exchange and custodian that launched a captive insurance company, Nakamoto, in January.
While a growing number of companies are using their captives to transfer cyber risk, some of the most innovative are also exploring the possibility of insuring reputational risk, according to Jason Flaxbeard, executive managing director, captive management and consulting, Beecher Carlson.
The first captive to manage risk associated with crypto currencies has been formed on Bermuda. The vehicle has been formed by a large financial institution to take on the risk of digital assets that it stores on behalf of third parties being stolen.
This week Vermont passed legislation that creates a regulatory sandbox for the development of a new generation of innovative insurance products, services and technologies.
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.
Roundstone, a US provider of self-funded group captive health insurance, recently distributed over $5m to US business owners currently enrolled in one of its group medical captives.