Renewed interest in captives as market hardens

According to Victor Adesanya, vice-president, insurance at credit rating agency DBRS Morningstar, captives provide much-needed capacity mainly for cyber insurance and directors’ and officers’ insurance as traditional carriers increase pricing, expand exclusions, and reduce coverage limits, Strategic Risk Asia Pacific reported. Hard insurance market conditions have driven a renewed interest in establishing captive insurance as an alternative and more affordable form of insurance risk transfer.