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Captives Endure Market Challenges

As the insurance industry advances into 2002, a few trends in regard to captive insurers are being revealed. These trends are developments in reinsurance as they affect captives and the growth in new formations.

Many industry observers and participants had predicted the current absence of terrorism coverage, aggregate stop-loss and coverage for icon properties. It’s also become evident that toxic mold and professional liability coverages are hard to find. Pricing has increasingly become an attention-getter.

A development unexpected in many quarters, however, is the continuing fluidity of the reinsurance market.

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