Without question, the landscape of the entire insurance industry has changed dramatically over the last two years. As organizations around the globe pivot and evolve their business strategies, the insurance industry continues to adjust, creating unique challenges – and opportunities – for the captive sector.
Recently, Risk Partners’ Hartley Hartman spoke with Captive.com to offer his perspective on the current state of the captive market and share how our organization is helping customers craft tailored insurance solutions that align with their individual risk profile.
In the article, Hartley highlights how the pandemic disrupted the entire industry and why many organizations are now embracing captive strategies as insurance premiums continue to rise.
“During these challenging times, a captive structure has allowed organizations to retain more risk for which the commercial market has priced them out of, self-insure their retentions, and buy insurance above the current level, which has been extremely beneficial for those entities with favorable loss history that are being penalized by a hardening market and record natural catastrophe frequency.”
Hartley goes on to mention that as a growing number of organizations implement captive solutions, we continue to see non-traditional risks such as medical stop-loss and excess liability being written through captives. He also notes that a cell captive structure is one particular strategy that is traditionally underutilized, but is now much more appealing as companies reassess their risk profile and look for additional flexibility.
Hartley wraps-up the interview by offering his forecast of the road ahead for the captive insurance sector.
“Captives continue to be a highly sought-after risk management solution that allows organizations the ability to better manage costs and take control of their insurance portfolio and have allowed for a solution to organizations that feel the hardship of the volatility of the commercial insurance marketplace. Due to the innovative usage of captives and the variety of new and emerging risks that have yet to be adequately priced in the commercial marketplace, the limits to a captive insurance company are seemingly endless.”
To read the entire interview with Hartley, visit Captive.com. To learn more about this alternative risk solutions, be sure to read this blog to determine if captive insurance is a fit for your organization.