Investments
Navigating Market Volatility: Three Strategic Focus Areas for Insurers
Positioning your portfolio for resilience and opportunity in today’s evolving environment
April 2025
Investing in tomorrow: the future of captive insurers
Organizations can utilize captive insurance companies to potentially reduce insurance costs, improve risk management, and generate additional revenue.
In today’s dynamic insurance landscape, understanding the potential benefits of developing a risk-aware investment program tailored to your unique needs is more important than ever.
Our recent paper delves into how a well-structured investment program can potentially enhance the long-term value of your captive. By gradually incorporating diverse asset classes and aligning investments with your captive’s lifecycle stage, risk tolerance, and enterprise goals, you can seek to maximize the effectiveness of your capital.
Three ways to get started today
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Determine liquidity needsKnowing your liquidity needs helps ensure that the captive has enough cash available when needed, while also allowing you to manage investments wisely for long-term growth.
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Optimize governance structureSetting up the right leadership and decision making processes is critical to ensuring that the captive asset allocation continues to align with the organization’s needs and market dynamics over time.
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Find a partnerAn investment professional partner that’s an extension of your staff can help guide the captive’s growth and asset management, especially as market conditions and regulations change.
Captives are a powerful tool for organizations to reduce insurance costs, enhance risk management, and create an additional revenue stream. Captive assets should be monitored and managed in accordance with appropriate investment objectives that are often similar to traditional insurance companies.
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