’Many companies now have captives and our client list is growing,’ says head
The hard market has led to a rise in interest around the use of captive insurance facilities.
That was according to Barry Beard, Chubb Insurance’s head of global services and complex multinational in the UK, who felt the momentum around such facilities show no signs of stopping.
A captive firm is a wholly-owned subsidiary insurer formed to provide risk mitigation services for its parent company or related entities.
Speaking at Airmic’s annual conference in Edinburgh, Beard said discussions over the use of captives has increased and triggered moves for the creation of new domiciles.
“I have worked in captives for much of the 20 years I have been with Chubb,” he said.
“Many companies now have captives and our client list is growing.
“They can be viewed as daunting, but once you understand the way they are structured and how they operate, the benefits are clear.
“For multinational companies, they can deliver real advantages as it enables the group to cover their assets in various locations under a single operation.”
UK interest
This came after the UK Treasury approved the development of a new captive regime in Gibraltar.
Read: Gibraltar making moves to attract innovation
Read: Government of Gibraltar and Insurtech UK renew Statement of Intent deal
Explore more regulation-related content here or discover other news stories here
The UK government also plans to launch a consultation on creating a regulatory framework for captive insurance companies.
“The UK market has been in discussions with the government over a scheme which would allow captives to be domiciled here,” said Beard.
“The election has put any progress in hold, but the shadow treasury team have also been part of those discussions so it is hoped that it will be picked up after the election.”
He added that the ”hardening market in recent years has driven risk managers to look seriously at captives”.
“Captives are not simply a solution for a hard market,” he said.
”They are now seen as a viable alternative for many multinational businesses, particularly as it allows the clients to take more risk at a local level.”
No comments yet