Rising geopolitical and geo-economic tensions are leading to increased uncertainty and risk for multinationals with direct foreign investments, which in turn provides opportunity for political and trade credit insurance, and by extension captive insurance.
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.
Massachusetts-based managing general agency Energi Insurance Services has formed two group captives through its eCaptiv subsidiary to tackle the commercial auto insurance market in Canada.
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.
Connecticut has entered into two separate memoranda of understanding with The Hartford and Liberty Mutual Insurance to provide supplemental financial assistance to policyholders who file claims and receive awards to remediate their crumbling concrete foundations through the state’s captive insurance programme, the Connecticut Foundations Solutions Indemnity Company (CFSIC).
The State of Vermont licensed 25 captives in 2018, including one affiliated reinsurance company (ARC), according to statistics released by the Department of Financial Regulation.
The automotive, manufacturing and retail industry was responsible for the majority of new formations on Bermuda in 2017, according to the BMA Captive Report 2018.
Bermuda captives writing cyber risk experienced the greatest year-on-year percentage increase out of any line of business in the market in 2017, according to the BMA Captive Report 2018.
Specialty and commercial insurer Crum & Forster has set up a captive facility in the Cayman Islands through its health division.
The Bermuda captives market is open to innovative new areas of captive insurance, including potentially cannabis-related companies, a panel at a conference in London has heard.