AM BestTV at the Bermuda Captive Conference: As Companies' Understanding of Risk Evolves, So Do Their Captives
In this AMBestTV episode, attendees at the Bermuda Captive Conference in Southampton, Bermuda, said captive sponsors continue to find new ways to place their risk into insurance captives, including more third-party risk. Click on http://www.ambest.com/v.asp?v=bcc2619 to view the entire program.
Industry leaders spoke about how the captive industry has progressed, and what opportunities could become available.
"If we are looking at businesses that are really digital-focused, which obviously is a growing area, those types of businesses are experiencing much higher risk in the areas of data protection and cyber," said Becky Vernon, senior counsel, ASW Law. "Traditional insurance companies are really challenged in pricing those types of risk, primarily because they do not actually own the data that would enable them to price effectively. The data is actually owned by the company that operates the digital business. So potentially, those companies are now going to be looking to insure those types of risk through a captive."
Reflecting on his 20 years in the captive market, Dan Towle, president, Captive Insurance Companies Association, said, "One of the most exciting things about the captive industry is that it does not stand still. With new risks coming out all the time, who would have thought we would have things like terrorism or cyber risks. Captives have always fill that unique need and are often ahead of the traditional marketplace."
Susan Molineux, senior financial analyst, AM Best, said, "The captive market was born out of innovation. Captives first were formed as an innovative way to transfer risk. Captives are certainly here to stay they are just going to be used differently."
Other people in this episode:
- Scott Reynolds, president and chief executive officer, Member Insurance;
- Anup Seth, partner, managing director, Aon; and
- Ellen Charnley, president, Marsh Captive Solutions.
For full video coverage of the Bermuda captive conference, including exclusive executive interviews, visit http://www.ambest.tv/bcc19.
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