Hard market solutions: captive insurance thrives in tough times
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Companies are turning to captive insurance to self-insure their risks as rate hardening and COVID-19 related disruption affect the commercial insurance market. New business models for captives are opening up options for mid-sized companies.
The key takeaways of this edition are:
• Companies' use of captive insurance is growing as price rises and COVID-19-related disruption hit commercial insurance.
• A captive can make complex risks more insurable, especially in periods of high uncertainty.
• Use of captives is spreading from advanced markets to Asia and Latin America.
• In advanced markets, mid-sized companies are increasingly using new captive business models that provide flexibility and efficiency.