Rate hikes, economic challenges to drive captives market

Posted On: Dec. 3, 2020 9:26 AM CST

U.S.-based A.M. Best Co. Inc. has projected an increase in new captive formations in Europe, as the sector shows increased resilience despite COVID-19 pandemic-induced economic challenges, Asia Insurance Review reported. Continued rise in commercial insurance rates and challenging economic conditions are likely to drive companies to optimize their risk transfer programs and leverage captives.