From: Business Insurance
Hybrid insurance and reinsurance structures that blend traditional coverage with alternative risk transfer are gaining traction among captive owners seeking greater flexibility and protection from volatile pricing, experts say.
Hybrid structures allow companies to optimize captive programs, said Graham McCarthy, a Dublin-based partner at McGill and Partners, during a panel session at the Captive Insurance Companies Association 2026 International Conference.
Captive owners can “leverage markets, create arbitrage for themselves and ultimately keep control of their captive program,” he said.
Hybrid structures may include facultative reinsurance for specific risks, multi-line treaty reinsurance or multi-year aggregate protections. These approaches can help organizations stabilize costs and manage volatility in their captives, panelists said.
