There is growing trend among organisations of seeking to address rapidly developing risks through the use of a captive, according to Marsh’s 2016 Captive Benchmarking Report.
The report, which benchmarked 1,139 captives under Marsh management around the world, found that the number of captive owners writing non-traditional risks rose considerably in 2015.
The number of captives writing supply chain risk grew by 133 percent in 2015, while captives writing cyber liability grew 30 percent, political risk grew 27 percent and the number accessing the Terrorism Risk Insurance Act (TRIA) increased by 17 percent.
President of Marsh Captive Solutions, Chris Lay, commented: “Some of today’s risks, including cyber, political risk, and terrorism, are evolving so fast that at times the insurance markets struggle to come up with appropriate solutions to address them.”
He added: “Captives offer a unique solution for organisations that are struggling to find adequate insurance solutions and are a nimble tool that can quickly respond in the event of a catastrophic loss.”
