Why does the marketplace for captives continue to grow, especially in mid-sized enterprises? A big reason, as pointed out by Steve Bauman of Zurich Global in North America, is the ability to access and utilize data on the costs of risks within enterprises is more readily available and transparent. In the “old days” companies and organizations paid their premiums to insurance carriers with the hope that the risks would be whisked away. Without full access to data and transparency on risk cost, you paid up and crossed your fingers.
As Steve points out, now the managers of enterprises of all types and sizes realize that the more control they have over their risks, the more control they have over the success of their business. No longer should it be a mystery on what risks cost and how to better manage them. Captive insurance is the ultimate internal control!
Thank you all very much, and I look forward to hearing from you soon!