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Captive insurance: Risk-management benefits for businesses

September 23, 2019

In today’s insurance market, a single-parent captive can be a bridge between self-insurance and risk transfer for companies. Zurich's Todd Cunningham explains.

Captives harsh market

Today’s insurance market presents significant challenges for corporations seeking optimal solutions for their risk-management strategies.

A host of emerging risk patterns, such as higher jury awards in property liability cases and a spike in commercial auto accidents, may compel risk managers to consider the benefits of transferring their company’s risk to a single-parent captive. This is especially relevant in light of today’s lower interest rates and an inverted yield curve.

In this article for Captive Review, Todd Cunningham, Head of Strategic Risk Solutions and Captives for Zurich North America, explores the current market conditions and explains why single-parent captive insurance may help deliver a sophisticated and relevant solution for many businesses. He also outlines key considerations to help corporations optimize the benefits of this approach.

The information in this publication was compiled from sources believed to be reliable for informational purposes only. All sample policies and procedures herein should serve as a guideline, which you can use to create your own policies and procedures. We trust that you will customize these samples to reflect your own operations and believe that these samples may serve as a helpful platform for this endeavor. Any and all information contained herein is not intended to constitute advice (particularly not legal advice). Accordingly, persons requiring advice should consult independent advisors when developing programs and policies. We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication and sample policies and procedures, including any information, methods or safety suggestions contained herein. We undertake no obligation to publicly update or revise any of this information, whether to reflect new information, future developments, events or circumstances or otherwise. Moreover, Zurich reminds you that this cannot be assumed to contain every acceptable safety and compliance procedure or that additional procedures might not be appropriate under the circumstances. The subject matter of this publication is not tied to any specific insurance product nor will adopting these policies and procedures ensure coverage under any insurance policy.