Captives Fuel Growth and Income for Agency Owners

By Chris Kramer | December 30, 2009

  • December 30, 2009 at 12:53 pm
    Rams2010 says:
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    If my memory is correct, Chubb had to dismantle its agency-owned captive, Mt. View Indemnity, due to conflict of interest issues. Steering business to an entity owned by the agency may or may not be in the best interest of the client, but the appearance of impropriety still exists.

  • December 30, 2009 at 1:13 am
    Bill says:
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    No conflict in my opinion. The fronting carriers rating and the premium charged are the main considerations that most clients are interested in. What would they care if we make more income or the carrier makes the income.

    I dont see the concern.

  • December 31, 2009 at 10:43 am
    Mitch says:
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    is this situation transparent/disclosed to client (that agency owns the captive)?

  • December 31, 2009 at 12:23 pm
    steve says:
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    Yes it is disclosed by the reputable agencies. And the clients are well served by being in a group of well managed insureds, all who get better claims and loss control services from the agency since they have skin in the game.



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