Captive.com–As with previous commercial insurance market disruptions, captive insurance companies are responding to the current hardening traditional market, according to AM Best.
“These companies came into existence because of difficult markets,” said Fred Eslami, associate director at A.M. Best. “Those difficult markets exist right now.” Current conditions will likely result in more new captive insurance companies or parents of existing captives adding coverage lines to the alternative risk transfer vehicles or finding other ways to use them.
