Finance, Investments, and Accounting
The conundrum between a captive insurance company choosing a passive investment strategy versus an actively managed strategy has always existed. For a captive, the choice of an active investment strategy versus a passive one should involve considering a number of factors.
Individuals and companies are often too quick to forget about investment risk, or assume the risk probability of the event is too small to happen. Real-life examples also illustrate that there will always be investors reaching for yield, especially in low-interest-rate environments, and when they should beware.