Captive popularity up in hardening market
LEGACY business experts are targeting the risk-retention sector as captive owners look to make their operations more efficient in the face of a hardening market.Rationalisation in the captive sector will become increasingly important this year and there looks likely to be an increase in interest in acquiring books of legacy captive business.Hardening conditions generally make captive solutions appear more economic and the coming months are likely to see a reverse in the trend of captive owners running off their operations, according to Charles Winter, head of risk finance at Aon.In time, he predicted, there would also be a turnaround in the number of new formations.Existing captive owners are already considering how they use their operations.