How Captive Insurance Empowers Banks During Turbulent Times

Following the Silicon Valley Bank collapse, small bank deposits were down a record $119 billion in March according to CNBC. While as of May, there are signs that this is stabilizing, it has still spread fear which has deeply impacted small and mid-sized banks. This combined with increased cyber-related threats, an uncertain economy, evolving compliance regulations and changing customer expectations leaves banks vulnerable to unique risks. Perhaps this is why banks are increasingly turning to captive insurance, an insurance company subsidiary owned by the bank itself, as a risk management solution.