CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 12, 2020 10:08 AM (EDT)
In this episode of AMBestTV, with the Vermont Captive Insurance Association’s (VCIA) virtual conference underway, Dan Teclaw, senior financial analyst, AM Best, said overall financial results for AM Best-rated captives remain favorable. Click on http://www.ambest.com/v.asp?v=ambcaptives820 to view the entire program.
Teclaw addressed whether there has been any discernible impact on captives from the pandemic.
“AM Best has not really seen any impact at this point,” said Teclaw. “Of course, it is early and things are continuing to develop, but captives have not really had any type of layoffs or anything. Obviously, premiums are down, which are related to shutdowns, as well as claims and frequencies.”
Teclaw also highlighted whether the crisis will spur any new strategies.
“I think companies are continuing to look for new ways to either use their captives for new lines or to form new captives,” said Teclaw. “I think there will obviously be some consideration for how they will manage their business interruption risk going forward, as well as whether they will keep retentions and those type of things. Certain structures are also being floated or bandied about with some cell captives.”
Going forward, Teclaw believes captives are going to face challenges on pricing adequacy in order to preserve the strength of their balance sheets to cover losses that they may have.
To access the related market segment report, titled, “Commercial Market Dislocation Could Provide New Opportunities for Captives to Fill the Void,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=299661
Additional coverage of the VCIA’s virtual conference, which runs Aug. 11-13, is available at:
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html . View AM BestTV episodes at www.ambest.tv .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.