Global Insurance Law Connect (GILC) reports that captive insurance formations are accelerating globally as corporates seek greater control, stability, and resilience in response to prolonged hard market conditions. The 2026 GILC Captives Report identifies sustained premium increases, constrained underwriting capacity, and emerging risk complexity as primary drivers behind a marked expansion in captive utilisation. Drawing on insights from member firms across 20 jurisdictions, the report finds that the hardening commercial insurance market since 2018 is the single most significant catalyst for this growth. Captives, once predominantly used by large multinationals, are increasingly being established by mid-market corporates, public sector entities, and organisations in developing economies. In Europe, member firms in Germany, Spain, Italy, and the UK report sustained increases in formation activity. Spain estimates approximately 50 per cent growth in captive demand over the past five years as businesses respond to rising premiums and reduced coverage availability. Caroline Wagstaff, CEO of the London Market Group, provides the foreword for the report, highlighting the strategic importance of captive development and the opportunity for regulatory reform to strengthen the UK’s position as a global insurance hub. Wagstaff says: “The UK’s forthcoming captive regime represents a major step forward, ensuring we retain and attract corporate capital that might otherwise move offshore. By introducing a proportionate, competitive and internationally aligned framework, the UK is positioning itself as a leading domicile for the next generation of captive growth”. Beyond formation growth, the report identifies a widening strategic application of captives. Organisations are extending captive programmes beyond traditional property and casualty lines to test emerging risks, manage climate-related exposures, and support ESG-aligned strategies. Michaela Hickson, CEO of Global Insurance Law Connect, concludes that while regulatory frameworks vary by jurisdiction, proportional oversight and competitive positioning among domiciles point to sustained global momentum in the captive sector. Read the full report here: https://www.globalinsurancelaw.com/2026/03/03/gilc-captives-report-corporate-demand-drives-global-surge-in-captive-insurance-formation/
