London
06 June 2017
Reporter: Mark Dugdale

Small captives edging closer to dominating market


Small captives that generate less than $1.2 million in premiums annually now account for almost 44 percent of Marsh-managed captives, up from 24 percent in 2012, according to a new report.

Marsh’s 2017 Captive Landscape Report, which examined more than 1,100 captives around the world under Marsh management, revealed that extra-large captives, defined as those generating more than $20 million in premiums annually and mostly established by FTSE 100 or Fortune 500 companies, made up only 20 percent of the total in 2016, due to consolidation within certain industries, such as healthcare.

Other highlights from the report included the finding that the number of owners using captives for cyber liability programmes increased by nearly 20 percent in 2016, representing the fastest growing non-traditional risk in Marsh-managed captives.

The number of new captive formations in Latin America also increased by 11 percent in 2016—the largest growth among all geographies.

Nick Durant, president of Marsh Captive Solutions, said: “As the risk environment continues to evolve and become more complex, organisations are increasingly using captives to help them meet corporate objectives, support business units, access alternative risk capital, and protect employees.”

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