Using a Captive To Insure Unique Risks
July 13, 2020
A new Captive Thought Leader Video featuring Rachel Seale, consulting actuary with Milliman, titled "Insuring Unique Risks in a Captive," has recently been added to the Captive.com video library.
Ms. Seale says while captive insurance companies are most often used to insure traditional exposures and insurance risks, they can also be used to insure just about any risk to which a parent company is exposed. For example, there are new and emerging risks such as cyber and technology risks, she says, and there are risks that are unique to a specific company or industry as well as low-frequency risks and high-severity risks.
According to Ms. Seale, two key issues come to mind when a company is considering insuring unique risks in a captive. The first is policies' forms and definitions, she explains, and the second is how to calculate an adequate premium for this unique risk for traditional types of insurance.
Although there may be challenges with placing unique or hard-to-place risks in a captive, depending on the situation, a captive may be a very good option, Ms. Seale says.
There is no cost to view the videos, and you will find them in the Captive Thought Leader Videos section of Captive.com. More videos will be added in the future.
(Ms. Seale is pictured above.)
July 13, 2020
