Magazine article Risk Management

Executive Forum

Magazine article Risk Management

Executive Forum

Article excerpt

MAN-MADE AND NATURAL DISASTERS over the past several years have had an accumulative impact on property reinsurance markets. These events have caused some reinsurers to reduce their available capacity, refuse to write special risks, such as coastal exposures, or withdraw from certain markets entirely. Liberal court decisions, large jury awards and out-of-control state workers' compensation programs continue to plague the liability markets. The world recession, past difficulties in real estate investments and current low interest yields on savings have contributed to low return on investment for many reinsurers. What do these pressures on the world's reinsurance markets mean to risk managers? Reduced limits and increased costs!

It is anticipated that the hardening reinsurance markets will cause many risk managers to renew their interest in alternative risk funding mechanisms. One such mechanism that has experienced moderate but steady growth over the last few years is the captive. A captive, which is an insurance company licensed to do business under the insurance and banking regulations of its domicile, insures the risks of its owner(s). …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.