CICA president Dan Towle believes we are living in the “Golden Age” of captive insurance, as we see large numbers of new companies establish captives, greater utilisation than ever before is facilitated and large industrial countries introduce more captive friendly legislation.
Towle made the comments when speaking at the opening address of the European Captive Forum in Luxembourg this morning.
“I have been in captive insurance for nearly thirty years and like many of you have navigated hard and soft market cycles and worked through periods where our industry was constantly under attack,” he said.
“Captive insurance has now proven its business purpose and value over a prolonged period of time. We still have our sceptics and our detractors, but no one can legitimately refer to the captive industry as the alternative market any longer ─ we have reached the Golden Age. A time when captives are thriving.”
Towle noted the “challenges and growing pains” the captive industry has faced during previous decades, including scrutiny and misunderstanding from regulatory authorities and the mainstream media.
“As more businesses turn to captive insurance, the captives are becoming more sophisticated than ever and are more strategic than they were a decade ago,” he added.
“New technology, better data and evolving risk strategies are giving captives the edge in providing coverage ahead of what the commercial market can provide.
“It is exciting to see this growth and expansion. I believe this gives us a unique opportunity to highlight the value of captive insurance to an even wider market. The captive insurance industry is often misunderstood by the mainstream media, governing regulators and others.
“That said, we need to continue to be diligent. As we continue to grow, we attract more attention and we need to consistently educate, lobby and defend the use of captives for better risk management and financial efficiency. Despite our success, we cannot rest on our laurels.”