What's Happening?
The University of Nebraska-Lincoln's Department of Agricultural Economics is hosting a two-day workshop on December 2-3, focusing on the use of captive insurance in agriculture. Captive insurance companies, which are owned by the businesses they insure,
are common in industries like manufacturing and healthcare but are relatively new to agriculture. The workshop aims to educate producers, agribusiness leaders, and service providers on how captive insurance can complement existing risk management tools. The event will cover topics such as the benefits of captives, current insurance market trends, and governance and tax considerations.
Why It's Important?
The introduction of captive insurance to agriculture could provide farmers and ranchers with enhanced risk coverage and financial benefits. Traditional insurance policies often leave coverage gaps, and captives can offer a customized layer of insurance to address these gaps. This could lead to better financial stability for agricultural businesses, allowing them to manage risks more effectively. The workshop represents an important step in educating the agricultural sector about innovative risk management strategies that could lead to more resilient farming operations.
What's Next?
Participants in the workshop will gain insights into forming and managing captive insurance companies, potentially leading to increased adoption of this strategy in agriculture. The event may also prompt further research and development of captive insurance solutions tailored to the unique needs of the agricultural sector. As awareness grows, more producers might consider captives as a viable option for risk management, potentially influencing the broader insurance market.
