What was old is new again. The captive market is experiencing exponential growth in the number of captive formations and lines of business covered. While insureds are using captives for a wide array of insurance challenges, more and more insureds are finding relief from catastrophic property risks, excess liability and emerging risks – the very exposures that the captive market was built to serve over 60 years ago and during the liability crisis in the 1980s.
I was thinking about this, recently, as I was in San Francisco being driven around in an autonomous vehicle. The technology that drives autonomous vehicles has yet to be fully vetted and understood by the underwriting community. A prevailing optimistic thought is that autonomous vehicles will be safer than those with human drivers. Until that is proven by statistics, the traditional insurance market may not embrace covering the exposures with good efficiencies I’m excited by the prospects of future partnerships of Insureds with captives and those insurance companies embracing captives with fronting services.
That is where captive insurance can be best applied – where a potential sizable gap in the understanding and confidence of an emerging risk may exist.
Since its inception, captive insurance has excelled as an alternative solution of risk management for insureds whose loss histories, and business challenges caused them to be outpriced or underinsured in the traditional insurance market. That holds true today – insureds looking to be more self-resilient are taking a longer-term look at their risks. Captives are a near-perfect fit for that longer view, allowing insureds to manage their exposures when they are challenged to find adequate coverage and pricing in the traditional insurance market.
Many insureds seem to be coming to the same conclusion. For the last several years, captive formations and utilization has seen significant growth. From the property risk side, interest in captive utilization for catastrophic coverages is particularly increasing. The increased frequency and severity of weather events, combined with the higher premiums in firmer insurance markets, are enticing insureds to the captive market to offset some of the risk.
Likewise, the challenging risk environment market is putting pressure on the casualty coverage side of insurance. Excess liability coverage is undergoing economic pressures, adverse loss experience and the impact from nuclear verdicts, where rates and coverage adjustments may be needed to bring better balance. Once again, captives are providing insureds with a viable risk management option for transferring risk.
Global Asset Protection Services, LLC, and its affiliates (鈥溕喽嗍悠礡isk Consulting鈥�) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. 色多多视频Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, 色多多视频Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.
US- and Canada-Issued 色多多视频 Policies
In the US, the 色多多视频insurance companies are: Catlin 色多多视频 Company, Inc., Greenwich 色多多视频 Company, Indian Harbor 色多多视频 Company, XL 色多多视频 America, Inc., XL Specialty 色多多视频 Company and T.H.E. 色多多视频 Company. In Canada, coverages are underwritten by XL Specialty 色多多视频 Company - Canadian Branch and AXA 色多多视频 Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following 色多多视频surplus lines insurers: XL Catlin 色多多视频 Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor 色多多视频 Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.
