Risk & Business

I recently saw that Westfield Insurance and Eastern Alliance are entering into a partnering agreement to set up a captive facility. A captive as many of you who read my blog know, is a risk financing mechanism where the owners of the captive are usually the insured's.  The captive space has been growing rapidly across the nation. As they have seen premiums paid into captives,  Insurance companies are realizing that they better get on the train before it leaves the station. Captives are here to stay as many States are passing legislation to promote their formation. I predict that in a decade a large percentage of the insurance business will be in captives where business owners and insurance companies are partners in captive insurance companies. This will be an amazing development for insurance. Until next time be careful out there and know your risks. G. Kevin Nemith, President CNC Insurance Associates Inc. Serving DE, MD, NJ, PA, & VA www.cncinsurance.com www.bizinsurancet

Smart systems for everything seem to permeate today's society. With the technological advances one would assume that computers could reduce risk or eliminate it. Imagine that anything you want to do or get involved in, you could turn to a computer model that tells you how to succeed with very little risk. Sounds possible right?  Well the fact is risk is increasing. Computers are of some help but risk continues to grow like a weed. The other factor that computers cannot predict is human behavior. It seems that us humans still rule when it comes to creating risk and allowing it to flourish. Maybe one day computers will catch up. Then the risk of computers taking over humans may be the next risk battle. Until next time be careful out there and know your risks. G. Kevin Nemith, President CEO CNC Insurance Associates Proudly Serving DE, PA, NJ, MD, and VA