The number of owners using captives for cyber liability programmes increased by nearly 20% in 2016, according to
Marsh Captive Solutions’ 2017 Captive Landscape Report. This represents the fastest growing non-traditional risk in
Marsh-managed captives.
The report found that, more than ever, captives are playing an integral role in organisations’ risk management strategies. The study examined more than 1,100 captives around the world under Marsh management and focused on understanding how captives are being used and where opportunities for greater utilisation exist.
Meanwhile, the majority of existing Marsh-managed captives – 62% of non-US and 74% of US captives – see funding corporate retained risk such as large deductibles and self-insured retention as their captive’s primary benefit.
According to the report, the number of new captive formations by parent companies in Latin America increased by 11% in 2016 – the largest growth among all geographies. Small captives or those generating less than $1.2 million in premiums annually account for almost 44% of Marsh-managed captives, up from 24% in 2012.
Nick Durant, president of Marsh Captive Solutions, said that 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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