As the health crisis continues, one issue that companies will
likely face is the issue of renewing their insurance. In any bear
market, the lack of liquidity can drive the insurance market
'hard,' making it more difficult to place new coverage or
renew policies at anything less than substantially higher premiums,
higher deductibles, or both. Businesses may find it best to
self-insure a portion of their risk or renew their existing
policies while retaining a higher deductible. Businesses facing
these choices should strongly consider forming a captive insurance
company to help better manage their risks. Several issues that
business owners, CFOs, and risk managers should consider:
- Fronted coverage to meet
business obligations. If your business has a regulatory or
contractual requirement to maintain an insurance policy with a
minimum rating from AM Best or other nationally recognized rating
agency, a captive insurance company can help you self-insure those
risks while
