Three areas of interest to the captive insurance industry were analyzed in the recent Situation Room panel. Vermont Captive Insurance Association 2024 Conference.
The panel was hosted by Sandy Bigglestone, deputy chief of the Captive Insurance Division of the Vermont Department of Financial Regulation, and featured 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 key issues impacting the captive insurance industry: affordable housing, private equity and fronting.
The panel noted that Vermont has several captives that address affordable housing, a hot topic in many states right now. Captives help by providing transparent costs, fixed insurance amounts and general coverage guarantees.
Looking at private equity, Miholic explained that private equity has become a tool for the entire captive toolbox. The concepts behind it and the benefits associated with it are becoming better understood.
He highlighted the benefits that private equity-related captives can bring to the market in terms of operational and financial benefits, but added that these need to be properly understood to make the most of them.
Concluding on the topic of fronting, Scherzinger said there is a growing number of captives using fronting with a growing volume of premiums. Fronting relationships are becoming more common as more domiciles participate in captives and adapt their arrangements to attract more.
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