Guy Carpenter’s Rob Collins Describes Activity in Captive Segment

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In this article in Captive International, Rob Collins, Managing Director and Captive Segment Leader, North America, indicates how captives are becoming an increasingly prominent factor in managing risk.

“Captive owners and risk managers use captives as catalysts to establish a clear risk tolerance framework and to manage exposures broadly across their business enterprises,” Rob explains. “Through the formation process, captive owners and companies are able to formally evaluate, quantify and monitor exposures, as well as adjust retentions to align with evolving risk appetites of the owner or market, and their captive’s capital position. The hard market has certainly led to an increased use of captives, although the value of understanding and controlling one’s risk position is valuable in any market cycle.”

For risk managers looking to manage reserves proactively and hedge against core and social inflation, Guy Carpenter has established a deep database of information to help clients evaluate legacy solutions by identifying the reserve margin in prior years and ensuring that pricing is efficiently established.

“Captives offer flexibility to help structure customized solutions to common and unique risks alike, from which the traditional market may shy away,” Rob continues. “With the support of robust analytical capabilities or capital modeling, the captive insurance industry can help you convert your vision into a sustainable risk or capital management solution.”