Emerging risks drive captive development
The global captive insurance industry is diversifying in an age of an increasing number of emerging risks, as it also evolves to help its core clients.
A panel at the 2023 Bermuda Captive Conference entitled “Captive ownership in the age of emerging risks” heard that companies are responding to high premium rates and new risks by increasingly using captives.
Panellists included Tanja Korff, senior vice president and client services leader at Marsh, David Maslo, head of business development at Africa Risk Capacity (ARC) and Pierrick Livet, senior manager, advisory, at KPMG Bermuda.
Maslo said that ARC had been set up as a joint venture on the part of a number of African governments and entities to allow a better response to natural disasters. He said it has already established a strong basis and uses parametric insurance for reasons of speed, transparency and cost.
Korff pointed out that 20 straight quarters of price rises had made companies look for more alternatives to traditional insurance and that Marsh plans to set up a cyber facility on Bermuda in Q1 of 2024, which will be called Edgware.
Livet agreed that there was more diversification in the market and commented on the growth that KPMG in Bermuda is witnessing in places.
Some of the latest developments that the panel particularly highlighted included a rise in cell captives on Bermuda and ARC’s proposed Takaful compliant captive cell, which is now in development.
