Although ‘the captive piece can be perceived as a dark art’ by some brokers, increasing interest in these models from the risk management community means opportunities abound for intermediaries willing to get stuck in
One of my key learnings from the past month has been around captive arrangements – a form of self-insurance where businesses will establish an insurance subsidiary to cover certain risks and exposures with their own capital, rather than purchasing a commercial insurance policy.
But what about the role of the broker? Do captives take away chances for client conversations by introducing more self-insurance, or do they pose an important retention and relationship building tool if brokers can tap into the opportunity of helping to structure and manage clients’ captives from the get-go?
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