New Zealand captives may rise
The New Zealand insurance market needs to develop a captive insurance industry to help expand its service industries, says Aon NZ Risk Consultant Jim Routledge.
A captive insurance company is one formed by an insurance buyer to cover some of its risks. There are about 20 captives based in NZ, some foreign-owned but most owned by local companies.
Speaking at the first NZ Captive Insurance Association conference last week, Mr Routledge – who has worked in Bermuda where there are more than 1200 captives – says they can offer many benefits to NZ companies and the whole economy.
Captive insurance consultant Peter Lowe says some organisations can find it hard to buy cover when the insurance market hardens.
“It is likely that in a year or so insurance costs will be on the way up again,” he said. “One way of managing the uncertainty of insurance costs is to form your own insurance company – a captive – and place some of your insurance with it.”
A captive insurance company is one formed by an insurance buyer to cover some of its risks. There are about 20 captives based in NZ, some foreign-owned but most owned by local companies.
Speaking at the first NZ Captive Insurance Association conference last week, Mr Routledge – who has worked in Bermuda where there are more than 1200 captives – says they can offer many benefits to NZ companies and the whole economy.
Captive insurance consultant Peter Lowe says some organisations can find it hard to buy cover when the insurance market hardens.
“It is likely that in a year or so insurance costs will be on the way up again,” he said. “One way of managing the uncertainty of insurance costs is to form your own insurance company – a captive – and place some of your insurance with it.”