Both domestic (private clients) and commercial (business owners and even large multinational corporations) insureds had been grumbling distinctly over this for years. It had been universally acknowledged that the insurance industry (from small-town agents to the world’s leading insurers) had not always responded favorably to the rights of the consumer, and even the consumers’ rights of recourse. To this end, it should also be made known that insurance companies and its associates have also had its fair share of grumbles.

Captive insurance

Still to this day, insurance companies and brokerage houses are faced with the challenge of keeping their doors open for business. if they have managed to avoid shutting out altogether, they have had no alternative but to downsize and rethink the way they serve their clients. This rethink takes another look at the kind of products they can provide policy holders cost-effectively and satisfactorily. Those companies (both insurers and insureds) that continue to be financially squeezed are those that remain slow, resistant and tardy to change and innovation.

And these companies are also faced with new rivals. Captive insurance specialist vehicles, let’s just say, are capturing the insurance markets. This of course, is much to the delight of the commercial client. Captive insurance companies, owing to the insurance concepts and principles being driven, are always in a strong position to treat their clients fairly. In the spirit of market-related competitiveness, as well as its trends and challenges, the sad irony on the side of the conventional insurers is that these captive insurance companies are never heavily over-burdened with an incapacity and lack of pooled resources to pay out their clients equitably and on time.

Whatever money clients pay towards their premiums is utilized resourcefully to pay their claims, and no one else’s.