A trio of areas of interest for the captive insurance industry were analysed in the latest Situation Room panel at the Vermont Captive Insurance Association’s 2024 conference.
The panel was hosted by Sandy Bigglestone, deputy commissioner of the Captive Insurance Division at the Vermont Department of Financial Regulation and included Adam Miholic, vice president and head of captives at Gryphon/Revantage, Brendan Dolan, president of the Housing Partnership Insurance Exchange and Adriana Scherzinger, head of alternative risk solutions, US Commercial Insurance at Zurich North America.
Bigglestone highlighted three important topics impacting the captive insurance industry – affordable housing, private equity, and fronting.
The panel pointed out that Vermont has several captives involved in affordable housing – a hot topic across many states right now. Captives helping by providing transparent costs, set levels of insurance & general guarantees of coverage.
Looking at private equity Miholic explained that private equity has become a tool for the overall captive toolbox. The concepts behind it are becoming better understood, along with the advantages.
He stressed the advantages that private equity-related captives can bring to the market in terms of operational and financial benefits but added that it must be properly understood if the most can be made from it.
Finally, looking at fronting, Scherzinger said that there was growing number of captives using fronting with a growing volume of premiums. Fronting relationships becoming more common as more domiciles get involved in captives and tweak their regulations to attract more.
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