Hello world!

 Having sampled the blog scene across the Internet I really didn’t find much that had to do with Captive Insurance or alternative risk transfer topics.  I don’t really thing that is too surprising.   We are, after all, talking about insurance and this isn’t something the general public gets too excited about until they have to write a check for their own coverage.  Nothing sends folks scurrying away at a cocktail party like telling them you work in offshore insurance.  

What I am hoping to create with this blog is a place where agents, brokers, corporate risk managers and business owners can air out questions, comments and concerns over their cost of financing risk, finding coverages and putting together insurance programs that solve problems, not create new ones.

This will never be a bully pulpit where I alone can render comment and opinion, but I welcome comments and opinions from all.  I don’t think you get to the heart of the matter without approaching the destination from different directions.

I look forward to a lively and helpful discussion in  the days and weeks to come.

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One Response to “Hello world!”

  1. Eric Ewing Says:

    Dennis, thanks for developing the blog. I think that alternative risk financing methods are appropriate for a broader application than we currently see in the market. Captives, and their cousins, consistently used by large corporations since the 1960’s have come to the attention of the middle market.

    The middle market is slowly awakening to the the possibility that standard insurance arrangements may not be priced according to any rational model related to risk and financial performance of their own account. Rather the more the middle market experiences the whipsaw of repeated market cycles the more they are likely to “explore.”

    As the middle market continues to experience the much less rational model of the broader commercial marketplace fraught with exposure to far-flung cat losses, the fancy of legislators, investment market performance and the arbitrary and capricious whim of underwriters, the better the alternatives will appear.

    Imagine the manufacturer who must manage rising energy and commodity prices, labor and benefits costs and competition from overseas who must then also price the insurance market in the equation. Madness. Nearly totally uncorrelated changes in cost of risk may drive the unprepared business from the market.

    For accounts of sufficient premium size, good loss experience and management maturity, there is no substitute for taking the risk “in-house” through some alternative insurance vehicle. I look forward to reading the comments, and thanks for the “war story.” RRRRbbbit!

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