737 is the number of unexpected. The best-laid plans can go awry, and this is certainly the case for Boeing. It’s also the case for all airlines, airports, businesses, mechanics, and passengers who have had their lives and operations interrupted by the FAA grounding the Boeing 737 MAX 8.
A “sunk cost” is typically defined as money that once spent is never recovered. If you paint your house and decide you hate the color, you can paint over it with a color you like. Nevertheless, the cost for the old paint was a “sunk cost.” In many ways, commercial insurance is a “sunk cost.” Aside from
Insurance is like a parachute. If it’s not there when you need it, you probably won’t ever need it again.
This is particularly true for many small and mid-market businesses. Unlike large corporations that can usually weather disaster, small and mid-market companies are often one disaster away from extinction.
The Captive Insurance Companies Association (CICA) recently released Commercial Insurance and Captive Insurance Industry: Commonly Accepted Practices. CICA is the world’s largest domicile-neutral captive insurance association. This guidance from CICA for captive managers and service providers focuses largely on risk pools