It's getting harder and harder to remain a captive. Income is down, CAT losses are up, and customers are demanding new forms of interaction which necessitate investments in digital technologies. As a result, captives are struggling to find ways to do more with less.
Captives face wider global challenges as well:
• It's getting harder to maintain uniform procedures in an international environment where accounting standards are developing in different ways.
• New regulations, such as the General Data Protection Regulation in Europe, demand increasingly detailed reporting – a necessary but time-consuming activity that can detract from core business activities.
• US states, which have jurisdiction over the industry, must comply with new rules by the early 2020s following a recent agreement between Europe and the US to level the insurance playing field.
This content focuses on the future for captives and how captives can leverage specific digital technologies to address global challenges.