Captive Alternatives is anticipating a rise in emerging and non-traditional risks, such as cyber, reputational, supply chain and employee benefits, which it sees as among the key drivers for growth this year.
Mark Jacobs, chairman and CEO of Captive Alternatives, said: “Employee benefits, in particular, I see as a big area of growth. Employers want to stay competitive by offering excellent benefit packages, but the commercial market is so volatile that employers will increasingly move to self-insurance and alternative market options. This is the only way to control costs and benefit from investments in risk control.”
Jacobs believes an increased dependence on technology and globalisation has left companies facing more risk than ever before. “Living in such a connected world is exciting and leads to rapid innovation but we’ve also seen the dark side, with cyber-attacks, data breaches and even global health crises like the recent coronavirus spread,” he explained. “These issues are moving faster than the traditional markets can react, so risk managers have to continue to find alternative financing mechanisms.”
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