It cannot be said anymore that captive insurance is the game changer. Captive insurance industry concepts and resources have been around for years already. It is just a matter of continuous awareness being created to draw the markets. This can be any commercial or industrial business under the sun. From the smallest to the largest. Perhaps conventional insurance service providers have continued to pull the wool over less resourceful clients’ eyes, shielding them from the captive insurance concept so as to not lose their unfair share of the insurance market.
But could the captive insurance industry be defined as today’s perennial disrupters as today’s millennials would have put it? An emphatic; yes. The conventional insurance representatives, from the small town agency offices to the city underwriters are not yet losing any sleep over the disruptive nature of captive insurance practices and its representative agents. Because insurance as you may still know it today is still too big to be disruptive.
And too big to fail. But you remember what happened the last time they said that? Sadly, history has a nasty habit of repeating itself. And when you think about it, the insurance market as you know it today is due a great big fall. Not even the reinsurance markets are likely to be spared. This is thanks to global warming and climate change. Extreme weather events continue to have a wearing effect on the underwriters’ pools.
And what will happen to all the millions of clients across the globe when that pool runs dry. Will they then be able to turn to captive insurance alternatives instead? Never mind the answer to that because by the time insurers’ pools run dry, insureds may have no alternative but to turn to captive insurance.