By Randy Sadler
If 2020 and 2021 showed us anything, it’s that the unexpected can and will happen—whether it’s a global pandemic, a cargo ship blocking one of the world’s busiest trade routes, or a storm creating a widespread power outage. These unforeseen risks are difficult to predict and insure against, which made captive insurance, with its ability to write broad coverage and fill gaps in coverage, a useful tool.
Combined with the hardening of insurance markets, this is one of the reasons the pace of captive formations has increased. According to the 2021 Captive Benchmarking Survey from Aon, there has been sizable growth in captive ownership. As business owners and leaders consider 2022, they should take into account these five trends when developing a robust risk-management strategy.
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