A looming US government shutdown could ripple through the national economy and present major challenges for the insurance and reinsurance sectors. The credit rating agency AM Best emphasizes that the length of the shutdown will significantly impact the industry, with a prolonged disruption undermining consumer confidence, business investments, and potentially unsettling financial markets.
A loss control visit is a critical component of risk management for large commercial insureds, helping to identify, assess, and mitigate exposures that could otherwise result in significant financial loss or reputational harm. These visits, typically conducted by insurance carriers or specialized consultants, deliver substantial benefits to both insurers and insureds.
Underwriting is the foundation of successful captive insurance operations and is essential to differentiate "good" insureds from the merely "lucky" ones. The ability to identify and select insureds whose superior loss performance is due to replicable risk management—rather than chance—is one of the greatest determinants of a captive's long-term profitability and stability. While captives are a sophisticated alternative risk financing tool, they bear a significant amount of potential risk. Evaluating this risk, and managing it through proper underwriting is one the most important aspects when considering forming and operating a captive insurance arrangement.
Evaluating balance sheets and income statements involves thoroughly reviewing the financial components, performance metrics, and historical trends to assess a company's fiscal health and operational effectiveness.
Commercial general liability (CGL) insurance in 2025 is has experienced some market stabilization and evolving risk exposures, particularly around rising claims severity, tightening underwriter scrutiny, and expanding litigation risks. Captive insurance is increasingly used as an alternative strategy for businesses to manage coverage gaps and exercise greater control over liability costs.
Deductible Reimbursement Policies (DRPs) provide a focused and strategic way for businesses to manage risk and insurance costs. DRPs are designed to reimburse the insured for deductibles paid on claims under high-deductible insurance policies, enabling companies to select higher deductibles, reduce their premiums, and establish a financial cushion against large out-of-pocket expenses following a loss.
This independent distributor specializing in industrial and contractor supplies, headquartered in Illinois is recognized for its broad inventory, expert knowledge and reliable local service. With 40+ years of experience, over $260m in total insured values, and loss free claims experience for their property exposures, they have retained a significant amount of underwriting profit within their wholly owned captive insurance company.
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