From: Captive International
Dan Towle, president of the Captive Insurance Companies Association, congratulates Captive International on its 20th birthday and highlights the role of the association for the sector’s future growth and success.
Congratulations to Captive International on 20 years of sharing captive industry news and helping us stay connected! Part of what makes our industry great is a sense of community and a willingness among captive insurance colleagues to help each other and share best practices. Thank you for being a part of that community.
Over the past 20 years we have navigated through hard and soft market cycles and captive insurance has increasingly proven its business purpose and value. Today the captives sector can no longer be referred to as the alternative market. The captive industry is thriving, with more than $100 billion in premiums written through captives domiciled in the US alone, according to 2022 market studies.
AM Best reported in August 2023 that for captives receiving their ratings, with the continued growth in captive surplus and dividends, it is estimated captives have saved their organisations $9.4 billion over the past five years.
Another aspect of our market growth is the emergence of new captive insurance domiciles worldwide. It is encouraging to see France enter the marketplace and to see interest from Germany, Italy, Spain and the UK. This clearly signals the growing understanding of the value of captive insurance. It also signifies the acceptance by these countries’ governments of the validity and valuable business purposes of captive insurance.
Engaging tomorrow’s leaders
More recently we are seeing continued interest from private equity firms regarding making investments in captive management and other areas of the captive insurance industry. This is giving needed capital for organisations to grow and the money to pay higher-than-average wages to hire key people.