Insurance brokers are an important function in the world of risk management. They facilitate the placement and purchase of insurance, and provide services to insurance companies and consumers that complement the insurance placement process. Insurance brokers typically work for the policyholder in the insurance process and act independently in relation to insurers. Brokers assist clients in the choice of their insurance by presenting them with alternatives in terms of insurers and products.
Insurance intermediaries can bring innovative marketing practices to the insurance marketplace. This deepens and broadens insurance markets by increasing consumers’ awareness of the protections offered by insurance of all kinds, their awareness of the multitude of insurance options, and their understanding as to how to purchase the insurance they need. Captive insurance should no longer be seen through the lens of brokers as competition or some sort of exotic instrument. By addressing the broader needs of their clients, brokers should embrace captives as one of many tools they can provide their clients when establishing their insurance needs. Indeed, many insurance arrangements today consist of layers in traditional insurance products along with captive insurance.
It is incumbent on the captive insurance industry to educate and work with brokers in all regions. We at VCIA are looking for ways to get this message across and better access the broker network to try and dispel the notion that captives can’t be a key tool for them and their clients. We need to be seen as part of their solution for the client’s insurance needs and not as competition. I would love to get your thoughts and ideas on this.
Thank you all very much, and I look forward to hearing from you soon!