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Article: Captives don't require regulator protection: self-insured risk should have their risks are financed.(Another Perspective)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- March 7, 2005
- Author:
CopyrightCOPYRIGHT 2005 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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TODAY'S INSURANCE WORLD IS roiled by accusations and investigations into allegedly improper activities by brokers and carriers. Some of these accusations touch upon forms of alternative risk finance, including captives.
At the fore, it must be agreed that proven illegal acts must be prosecuted and punishment meted out. An individual breaking the law must be dealt with by the law. But to embroil an entire industry is, in my view, inappropriate. Unfortunately, some state attorneys general have chosen to pick a fight with an industry usually unable to defend itself.
To directly address the captive issue, I must state that I view finite-risk structures and ...