Captives and legacy reinsurance: a growing symbiosis

Industry professionals are becoming increasingly aware of how the captive insurance and legacy segments of the insurance industry can work together to deliver economic benefits. Both are projected to see significant growth in the future and have developed solutions that solve common problems for corporations.

That’s the view of Mory Katz, senior vice president, global head of legacy solutions at BMS Group, who told Captive International in an article for our US Focus edition.

“This time has been characterised by innovation, with new jurisdictions bringing in captive legislation and the use of captives for new product lines,” said Katz. “Corporations have remained eager to take advantage of the endless benefits captive ownership can bring, including bespoke products, potential tax savings, greater claims and premium control, to name a few. In addition, captives can cover a broader variety of risks, including cyber. It’s therefore no mystery why 90 percent of Fortune 500 companies now have a captive, and the industry has moved to make smaller captives more cost-effective to suit those with a lower premium spend.”

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