In this episode of AMBestTV marking the start of the Vermont Captive Insurance Association’s (VCIA) virtual conference, captive insurance leaders, analysts and regulators say changing business needs and a less-accommodating commercial market are prompting organizations to consider new coverages and strategies for captive insurance companies. Click on http://www.ambest.com/v.asp?v=captives_covid820 to view the entire program.
Participants said that due to the impact of the COVID-19 pandemic, the captive industry may see some new opportunities.
"The captive industry tends to be very flexible and adaptive," said Ellen Charnley, president, Marsh Captive Solutions. "Things like a pandemic or changes in regulations or the environment often lead to new ways that a captive can be used."
"It can very much offer opportunities in response to current market conditions," said Rich Smith, president, Vermont Captive Insurance Association. "As the commercial market is feeling some strains and the reinsurance market is raising its premiums, these situations provide opportunities for captives to step in and respond."
Other people that appear in this episode:
- Dan Teclaw, senior financial analyst, AM Best; and
- David Provost, deputy commissioner, Vermont Captive Insurance Division.
Additional coverage of the VCIA’s virtual conference, which runs Aug. 11-13, is available at:
- Vermont’s Provost: In Time of Stress, Sponsors Tap Captives for Relief: David Provost, deputy commissioner, Captive Insurance Division, Vermont, said some sponsors of captives domiciled in that state have turned to their captive to help alleviate financial crunches during the recent pandemic: http://www.ambest.com/v.asp?v=provost820;
- VCIA’s Smith: Pandemic Shows Captives Can Better Respond to Sponsors’ Risks: Rich Smith, president, VCIA, said market insurance products often exclude risks that captives are better positioned to cover: http://www.ambest.com/v.asp?v=rsmith820;
- Pinnacle’s Walling: The Current Crisis Is ‘Information Looking for Data’: Rob Walling, principal and consulting actuary, Pinnacle Actuarial Resources, said insurance pricing was already shifting prior to the COVID-19 pandemic: http://www.ambest.com/v.asp?v=walling820; and
- Marsh’s Charnley: PRIA May Offer Captives a Path to Pandemic Coverage: Ellen Charnley, president, Marsh Captive Solutions, said the proposed federal Pandemic Risk Insurance Act would help provide a backstop to all licensed insurers, including captives: http://www.ambest.com/v.asp?v=charnley820.
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