Captive insurers, along with most of the property and casualty industry, face more financial challenges from the ongoing economic crisis, says Matthew Hamer, a Towers Perrin senior consultant in Weatogue, Conn. The company foresees the property and casualty industry could lose about 15%, or $80 billion, of its surplus by the end of 2008 because of unrealized losses partly due to falling equity prices and credit-related losses.
Captive insurers facing financial challenges