The number of captive insurance companies writing third-party business is growing at a double-digit pace, according to a new report from Marsh.
Technology advances are making it easier for organisations to offer insurance to their customers and suppliers, according to Marsh’s 20019 Captive Landscape Report. The report examined trends among 1,100 captives managed by Marsh Captive Solutions.
According to the report, 22% of Marsh-managed captives wrote some kind of third-party business last year, an annual increase of 12% and a 62% increase over the last five years. Coverage for contractor, vendor and customer risk saw a particularly sharp rise, spiking 138% among Marsh-managed captives in the last five years.
“More risk professionals today are embracing captives as a tool to secure their organisations’ future, whether it’s generating profits by underwriting third-party risks, accessing reinsurance, or providing cost efficiencies,” said Ellen Chamley, president of Marsh Captive Solutions. “No matter the structure or premium volume, captives offer flexibility to access and protect capital, accelerate business objectives, and facilitate the funding of programs that promote employee health, wellbeing and safety.”
The report’s key findings include: