Hedge Funds And Asset Managers Set Up Captive Insurers For Otherwise Uninsurable Risks

ValueWalk | 3 Mar 2018

Worldwide there already about 10,000 active captive insurers worldwide and 95% of Fortune 500 firms have captive insurers.

Why should asset managers care about captive insurers? Asset managers face a wide range of operational business risks, much like any other business. Some of those are uninsurable risks which managers then essentially self-insure, for example key personnel, business interruption, fraud, and different aspects of cyber risk.