A.M. BestTV: Captives Set to Become Vehicles for Analyzing Risk and Accessing Risk Capital

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FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 15, 2016 01:47 PM (EDT)
In this ^A.M.BestTV episode from the annual Vermont Captive Insurance Association (VCIA) conference, captive experts say they expect captives to host more new risks, expand their geographic reach and tap new forms of risk capital. Click on http://www.ambest.com/v.asp?v=vcia4816nc to view the entire program.

Full-length interviews from the VCIA conference are available as well. Please visit http://www.ambest.tv/vcia16 for full conference coverage.

“Today, captives are not just tools for managing the retention of risks and accessing reinsurance markets, but also are for accessing alternative market solutions, capital solutions and new forms of capital,” said Sean Rider, executive vice president, consulting and development, global capital practice, Willis Towers Watson. “I believe having the captive as a hub for analytically driven decision support is part of the evolution of captives.”

Rider also sees tremendous opportunities for captives to grow in Latin America, China and Europe.

Other people that appear in this episode:

• Steve McElhiney, chief executive officer, EWI Re; and


• Abe Kane, treaty account executive, Gen Re.

Recent episodes of ^A.M.BestTV include:

• Captive Regulators Worried About Efforts to Lure Domicile Switchers: At the third day of the annual VCIA conference, captive regulators from South Carolina, Vermont and Tennessee review captive oversight, including a strategy that has some domiciles offering tax breaks to captives that re-domesticate: http://www.ambest.com/v.asp?v=vcia3816nc.


• Starting a Captive Takes Months of Preparation: At the second day of the VCIA conference, experts in forming a captive said they start by determining if that type of insurance organization makes sense. Risk needs, taxation, regulatory requirements and location come next, they said: http://www.ambest.com/v.asp?v=vcia2816nc.


• Captive Insurers Challenged by Soft Market, Increased Scrutiny: At the first day of the VCIA conference, insurance executives said captive owners are faced with increasing competition from reinsurers and insurers willing to cut prices, along with extra scrutiny as regulators look more closely at business models and tax exposures: http://www.ambest.com/v.asp?v=vcia1816nc.


• Captives Covered by A.M. Best Outperform Their Commercial Peers:A.M. Best Senior Financial Analyst Fred Eslami reviews a new special report on insurance captives, which shows that on a composite basis, these insurers are reporting underwriting and financial results better than their overall U.S. commercial peers: http://www.ambest.com/v.asp?v=captive816.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv .

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.