The number of European risk managers using captives as part of their strategy for risks that are difficult to insure has risen by 4 percent, according to the 2018 Federation of European Risk Management Associations (FERMA) European Risk Manager survey.
The survey, which is the ninth biennial benchmarking survey conducted by FERMA in partnership with PwC, was completed by 734 respondents in 29 countries between May and July 2018.
The survey revealed that 38 percent of respondents use a captive as part of their strategy for risks that are difficult to insure, up from 34 percent in 2016.
Some 42 percent of the captives used by respondents were managed by their organisation, while 58 percent used a third party provider to manage their captive.
The survey also showed that 30 percent of respondents predicted an increase in the implementation or use of captive facilities as a result of the current financial and economic climate.
Respondents were also questioned on how important a role they predicted captives would play over the next two years in both traditional and non-traditional lines of coverage.
For traditional lines, 50 percent said captives would play an identical role, 38 percent said they would play a more important role, 5 percent said they would play a less important role, and 7 percent said they would not be covered.
For non-traditional lines, 56 percent said captives would play a more important role, 16 percent said they would play an identical role, 7 percent said they would play a less important role, and 21 percent said they would not be covered.
