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