2. To Respond to times of reduced capacity in the Insurance Market and ensure long term availability
- Captives and cells are not cyclical or volatile but are based on own loss experience and provide greater stability and continuity.
- Taking responsibility for own insurance requirements addresses the need for long-term risk protection. Traditional markets have been known to restrict the availability of capacity and cover when faced with new global risks.
- Accessing the reinsurance market directly also addresses concerns about insurer security due to reinsurers higher ratings