From: Captive Insurance Times

More organisations are considering a captive for insurance protection and financial flexibility in response to an increasingly difficult risk and insurance landscape, according to the Marsh 2020 Captive Landscape Report.

The report highlighted the trend of increased captive use continuing in the first half of 2020 amid an increase in challenging insurance market conditions and the impact of the global COVID-19 pandemic.

Marsh-managed captives saw steep growth in gross premiums in various lines of coverage in the past year due to the tightening global insurance market conditions.

Supply chain, business interruption and contingent business interruption premiums written saw an increase of 283 percent on average in 2019.

The results also showed a 64 percent rise in all-risk property premiums, led by the energy and financial institutions sector, which saw all-risk property premiums increase 151 percent and 104 percent, respectively.

Over the past five years, mid-size captives have seen the most growth, from 11 percent in 2013 to 23 percent in 2019. Meanwhile, jumbo captives have remained relatively stable with growth percentages between 61 and 54 from 2013 to 2019.

Meanwhile, financial services and healthcare remain the top industries by the number of captives and premium volume, however, it was noted that many other industries are expanding their use of captives.