Here’s How Captives Are Responding During the Unprecedented Coronavirus Crisis
White Paper Summary
The novel coronavirus has certainly hit every industry across the nation as details of the virus have come to light in the last nine months. Businesses have shut down. Workers have moved to remote environments. Many have had to put contingency plans into play.
The impacts COVID-19 has had on the insurance space are just starting to be felt.
“We were already entering a very hard market, and when you have an uncertainty like the pandemic, it just makes a tough market tougher,” said David Provost, Deputy Commissioner, Captive Insurance, Vermont Department of Financial Regulation.
“Companies will not know the full impact this will have on their business, let alone their insurance program, until they get through the brunt of it.”
It’s added another layer of complexity to mitigation efforts. Luckily, captive solutions are a viable option for many businesses contending with the unexpected exposures the virus has unveiled.
Captives work differently. Adding a captive insurance company to an enterprise’s risk solution portfolio can “help add some certainty to the current environment. You can control what you retain. You can control how you work with insurance companies to get the coverage you need,” Provost explained.
Here’s a closer look at how captives have been responding to the pandemic since day one and the benefits insureds can gain with such a program in place.
To learn more about State of Vermont, please visit their website.