From: Captive Review
Panellists at the CICA conference David Raymond, Nick Hentges and Mark Grothe talk about the growth of group captives since 1985, and why a further explosion in growth could be about to happen in the next few years
Group captives in the US have experienced rapid growth since their emergence roughly 40 years ago, with newer opportunities expected to continue this trend in the coming years.
That was according to panellists speaking in a session at CICA’s annual conference titled ‘Group captives – from niche to norm.’
David Raymond, a vice president at Travellers, told the audience their organisation now calculates US group captive premium at $6.5 billion, representing 6.5% of the $100bn traditional commercial insurance market.
Since the first formation of Raffles group captive in 1985, Raymond said he now knows of over 90 group captives active just on the casualty side, not considering other property or employee benefits group captives.
“There’s been a tremendous amount of premium growth in the space. I expect this growth to continue at this speed, if not more,” Raymond said.
