From: Captive Review
Speaking on a panel at the CICA annual conference, Udo Kappes, Graham McCarthy and Katherine Malley explained the value in committing to a captive programme, even during a soft market cycle
A softening property insurance market is forcing risk managers to more clearly articulate the long-term value of captives and structured reinsurance programmes, according to speakers at a panel discussion during the 2026 conference of the Captive Insurance Companies Association (CICA).
Speakers on the panel titled ‘Rethinking captive reinsurance strategy: Balance sheet protection beyond the primary programme’ said that while falling commercial market prices may tempt buyers to reduce captive participation, programmes implemented during the recent hard market are largely proving resilient because of the stability they offer over the insurance cycle.
Speaking during the reinsurance panel, Udo Kappes, head of insurance at RWE, said risk managers often face difficult internal conversations when trying to consolidate traditional programmes into captive structures—particularly when business units question the immediate financial benefit.
“When consolidating single-placed programmes, you have to explain what’s the benefit. In some instances, the CFOs are asking what’s the benefit for us,” he said. “For me the basic challenge was to find out are they better off with their single programmes, or can we really show a benefit in consolidation and captive use.”
