A.M. BestTV: Captive Insurance Pros: Hard Markets Repeat Themselves, but with a Twist

By a News Reporter-Staff News Editor at Insurance Business Weekly -- In this A.M.BestTV episode from the Cayman Captive Forum 2017, held in Georgetown, Grand Cayman, attendees said the catastrophes of 2017 could spur some price hardening, but that the impact will be felt selectively. Click on http://www.ambest.com/v.asp?v=imac31117 to view the entire program.

Not all attendees expect the market to harden in 2018.

"I have come to believe that the insurance industry has transformed itself to a certain degree," said Rich Smith, president, Vermont Captive Insurance Association. "However, I think with the data and expertise that is in the industry now, I question as to whether or not there will be a hardening market. I will be surprised if it does occur."

Nevertheless, Michael Meehan, consultant, Miliman, said he believes, "a hardening of the market will occur with property rates and there will be significant rate increases."

Michael Corbett, director, Captive Insurance at State of Tennessee, said he thinks no matter what conditions the market is experiencing, a captive can still be successful; however, if a company waits to form a captive when the market hardens, "it will be too late, and the company will have missed the opportunity."

For full video coverage of the Cayman Captive Forum, including exclusive executive interviews, visit www.ambest.tv/imac17.

Keywords for this news article include: A.M. Best.

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