A.M. BestTV: Captive Executives Say It's About Risk Management, Not Pricing

OLDWICK, N.J.--(BUSINESS WIRE)-- In this A.M.BestTV episode from the Vermont Captive Insurance Association (VCIA) Conference in Burlington, VT, panelists say their insureds focus on service, support and claims handling, which helps keep business flowing despite competitive pricing in the traditional market. Click on http://www.ambest.com/v.asp?v=vcia4817 to view the entire program.

Panelists said the advantages of a captive outweigh the competitive pricing found in the marketplace.

“It definitely makes sense to have a captive today,” said Kevin Jones, vice president, Iron Horse Insurance Company (a subsidiary of Chevron Corporation). “Regardless of the market, we still need that captive as a vehicle to implement our risk retention and risk management philosophies throughout the company, since we are somewhat resistant to the changes in the insurance market.”

Colin Donovan, president, STICO Mutual Insurance Co. (a Risk Retention Group), and Pamela Davis, founder, president and chief executive officer, Nonprofits Insurance Alliance Group, said they believe captives do many things better than the traditional market.

“Our retention rate is in the high 90s, and has been for years, so our members get it. They have seen us in action. If they have had a claim, they have seen how we approach it,” said Donovan.

“For almost 30 years, my company has served only 501(c) (3) non-profit organizations,” said Davis. “Our only mission is to support the non-profit sector and we are continuing to grow in this soft market.”

For full video coverage of the VCIA conference, including exclusive executive interviews, visit www.ambest.tv/vcia17.

Recent episodes of A.M.BestTV include:

• Captives, Known for Their Uniqueness, Find Ways to Benchmark Themselves: At the VCIA conference, a panel of captive experts assess the growing range of tools and strategies that captives use to measure themselves: http://www.ambest.com/v.asp?v=vcia3817.
• Vermont and Washington D.C. Regulators Describe Handling Risk Retention Group Failures: At the VCIA conference, two insurance industry regulators discuss their handling of risk retention group failures, as well as what issues arise in the oversight of agency captives: http://www.ambest.com/v.asp?v=vcia1817.
• Rated U.S. Captives Stand Above Commercial Peers: Fred Eslami, senior financial analyst, A.M. Best, reviews a recent Best’s Special Report that details U.S. captive insurers and how they continue to perform when compared with their commercial lines counterparts, mainly due to their loss-control activities and expertise in the coverages that they write: http://www.ambest.com/v.asp?v=captivereport817.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170814005819/en/

A.M. Best
Lee McDonald, +1-908-439-2200, ext. 5561
Group Vice President, Publication and News Services
[email protected]

Source: A.M. Best

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