Captive Insurance Co Association Annual Conference

Captive Strategies for Hardening Market - March 10, 2020

Chris Mandel along with Pete Rossiere, VP Risk Management, Sodexo and Ward Ching, MD Aon, will discuss Captive Strategies for Hardening Market at the annual Captive Insurance Association Conference in Rancho Mirage, CA on March 10, 2020  2:30-3:30

Visit the website for more information: http://www.cicaworld.com/EventsEducation/EventsIntConf/ProgramSchedule.aspx

The rise and fall of insurance market rates have often been a central driver for the emergence of captive insurance as a risk financing alternative or supplement to risk manager’s core financing strategies. Yet most captive advisers believe that commitments to captives should in general, be for the long term, irrespective of market rate trends. Of course, that’s easier said than accomplished as senior leaders typically want continuing evidence of the value proposition for owning an insurance subsidiary. Some believe that as soon as captives show reasonable profitability, regular insurance markets adjust to attempt to capture some of those shifted profits by cutting rates to attract new business, thus potentially limiting the length of a hard market. To the extent that occurs, is all the reason captive owners need to know that their time is better spent developing strategies for hard markets, regardless of length and be ready for market shifts when they occur. This session will focus on ways captive owners can be ready for market swings, using various tactics and methods that target greater initial risk taking balanced by laying off levels of risk that would otherwise be unacceptable in softer markets where capacity is plentiful, and rates are low. The session will review the pros and cons of each tactic including the market reactions to and moves to affect, captive absorption of large amounts of profitable capacity.