From: Captive International, US Focus 2025
Dan Towle, president of the Captive Insurance Companies Association (CICA), looks at where the global captive market is in 2025.
As global markets face mounting uncertainty and complex challenges, the captive insurance industry continues to thrive and remain strong as a vital risk management solution. Whether addressing economic volatility, hard market conditions or catastrophic events, captives are providing more strategic solutions than the traditional market.
Once organisations recognise the advantages of captives, premiums tend to remain within the captive market and do not return to the traditional marketplace.”
Dan Towle, CICA President
The recent strong statistics in new captive formations have been notable as have the continued growth of existing captives in increasing their retentions and expanded utilisation. Historical trends indicate that once organisations recognise the advantages of captives, premiums tend to remain within the captive market and do not return to the traditional marketplace. I do not expect that to change.
Educating the broader market continues to be vital to growth
Advocating for captive insurance and promoting its benefits to a wider audience is now more important than ever as there continues to be many misperceptions about the business purposes of captive insurance.
It is important to recognise that many organisations, including nonprofit companies, government entities, hospitals, religious groups and universities, also appreciate the enhanced risk management and financial efficiency that captives offer.
This is a niche industry, and the lack of knowledge in the legitimacy and business purpose of captives often leads to misunderstandings. If you have an opportunity to educate your congressional delegation or local legislators, now is the time to speak up. This is one reason why CICA has increased its investment in federal advocacy to a far higher level in recent years.
