More Firms Turning to Insurance Captives in Tightening Market

In response to today’s risk and insurance landscape, more organizations are using captives for insurance protection and financial flexibility, which is creating a broader market for captive insurance.

According to Marsh’s 2020 Captive Landscape Report, the tightening global insurance market conditions throughout 2019 led to higher captive utilization with steep premium volume growth in several coverage lines. For example, supply chain, business interruption, and contingent business interruption premiums written by Marsh-managed captives rose 283.0% on average in 2019. All-risk property premiums rose 64.0% on average, led by the energy and financial institutions sectors, which saw all-risk property premiums rise 151.0% and 104.0%, respectively.

Marsh formed a record 76 new captive insurance companies from January through July of 2020, up over 200.0% compared to the same period in 2019.

SOURCE:https://www.insurancejournal.com/news/national/2020/09/24/583949.htm
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