INDIAN WELLS, CALIF.--Chaos in the financial markets has migrated to captive insurers, meaning that fronting issues have taken a back seat to issues such as collateral and regulation, according to an annual survey conducted by the Captive Insurance Companies Association (CICA).
The survey, presented here today at CICA's 37th annual conference, found that of the 83 respondents who participated in the 2009 Fronting Survey, 97 percent listed admitted paper from an entity licensed to do business in their state as one of their primary reasons for using a fronting carrier, with regulatory compliance as the next highest reason at 40 percent.
Eighty-three percent of respondents rated the overall level of importance of obtaining a U.S.-licensed or admitted carrier for fronting their captive as either "very important" or "important," CICA said.
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