The total number of captives worldwide reached an estimated 8,000 in 2024, collectively writing approximately US$50 billion in premiums, according to Captives.Insure.
The firm says this milestone reflects significant growth across the captive insurance industry, driven by shifting market dynamics and evolving risk management needs.
Challenging economic conditions and a hardening traditional insurance market pushed companies to seek cost-effective alternatives, making captives an attractive option.
Captive formations continued to outpace closures for the fourth year in a row, with nearly three new formations for every closure.
The company observes that established domiciles such as Vermont, Utah, and Missouri reported strong growth, with Vermont licensing 26 new captives by May 2024, bringing its total to 690.
Meanwhile, France emerged as a key new domicile, signalling growth opportunities for the European captive market.
Cell captives dominated new formations at 38 per cent, while group and single-parent captives each accounted for 29 per cent of the market.
The average total captive premium increased to over US$1.3 billion, a slight rise from US$1.2 billion in the previous year.
Captives.Insure predicts the strong momentum seen in 2024 will continue into 2025, as companies increasingly recognise the benefits of captive solutions amidst ongoing challenges in the traditional insurance market.
Industry optimism remains high, with survey respondents rating the future of captives a 9 out of 10 for the third consecutive year.
