The use of captives is going to become increasingly
sophisticated in the future, according to a leading figure in the
market in Guernsey.
Peter Child, Head of European Operations at
Artex and Managing Director in Guernsey, represented the Guernsey International Insurance Association
(GIIA) on a panel at the Captives Knowledge Hub at the online
Airmic
conference.
He said that a large increase in interest for captive formations
was not yet translating to many new structures being established,
but clients with existing captives were ramping up their use as
they considered the application of their optimal risk-financing
strategies.
"The level of interest is just massive," said Mr
Child. "The volume is a challenge for us to deal with, but
conversions aren't at the same level as yet, and I think
it's because captives should not be seen as a 'magic
bullet' in risk management.
