The Covid pandemic has continued to show the value of captives in 2021, according to CIC Services. Despite vaccinations and hopes the pandemic would wane, businesses have again needed to call on their protection.
While declining cases at the end of 2020 seemed to indicate a “light at the end of the tunnel” for the pandemic, the current year continued to challenge businesses. “[B]usinesses have still been plagued by supply chain issues and delays, labour shortages and a myriad of other risks from natural disasters to cybercrime.”
Launching its “30-day countdown”, the firm highlighted several businesses saved from Covid-related losses by having a captive.
Randy Sadler, a principal for CIC Services, said: “COVID has been particularly hard on businesses, especially during government-issued state-wide shutdowns. Businesses with captives saw their COVID claims paid or were able to use their accumulated wealth to weather the storms.”
The countdown reflects that the year is running out for those without a captive to get protection in place for 2022, it says. Time is needed to correctly complete several steps before a captive can be launched, including the risk assessment, underwriting, feasibility study, legal captive formation, and application and licensing with regulators.
“It behoves businesses to begin the captive insurance conversation now and not let another year go by,” said Sadler. “As the last two years proved, crises can happen at any time and are often unexpected and unpredictable.”
CIC Services, pandemic, risks, cybercrime, losses, Randy Sadler, COVID, risk assessment, underwriting, Insurance, Reinsurance, North America