From: Captive International
Dan Towle, president of the Captive Insurance Companies Association, explains what’s driving the captive insurance market in 2023.
COVID-19 taught all of us that we are capable of adapting and changing more rapidly than we had believed possible. This acceleration appears here to stay. While not as intense as in the early days, we are all more aware of what’s possible and we are more comfortable using technology to get there.
CICA provides education and networking opportunities that have created a supportive community for young and new captive insurance professionals.”Dan Towle, CICA
This acceleration is clearly evident in the captive insurance industry, where creative strategies for captive expansion are helping organisations address a myriad of challenges. With continuing price increases and less capacity in the commercial insurance market, unprecedented supply chain disruptions, and increasing liabilities and reputational risks, we have an environment where captive insurance thrives.
For 2022, recent market studies revealed more than $100 billion in premiums was written through captives domiciled in the US alone, and an estimated 90 percent of Fortune 500 companies own at least one captive insurance company.
Growing and diversifying captives
The trends of growth and diversity for captives are continuing. Many of the top US captive domiciles licensed more new captives in 2022. We are seeing more property and cyber risk being added to captives. Some types of captives such as cell captives have seen an uptick in usage and we expect this trend to continue.