From: Business Insurance

The captive insurance industry is seeing further growth as businesses look to retain more risk in response to challenging commercial market conditions, according to a panel of industry leaders.

They were speaking last month during a session at the Captive Insurance Companies Association 2024 International Conference.

“We continue to see greater demand for captives as an alternative risk financing structure to help solve problems,” said Ryan Gustafson, Chicago-based head of captive solutions at American International Group Inc.

Captives are agile, nimble, and able to solve problems in unique ways that sometimes traditional insurers aren’t able to do as quickly, Mr. Gustafson said.

The property market is driving captive growth amid 24 consecutive quarters of global insurance pricing increases, he said.