The captive insurance market will see a moderate growth in the total number of captives in 2018, according to Ron Sulisz, president of Strategic Risk Solutions (SRS) International.
Speaking in the SRS webinar, 2018—The State of the Captive Insurance Market, Sulisz predicted an increase in the total number of captives within US domiciles and while other domiciles worldwide will remain steady.
Sulisz also suggested that there was a rise in interest in the Latin American and Asian markets, as well as an increase in compliance and filing requirements for captives this year.
Breaking down the outlook for 2018, Sulisz expanded his predictions and suggested how each type of risk-bearing entity was likely to fare.
He said: “Cell captives I would think will continue to see expansion and small captives will probably see a slight decline or a steady.”
“I think we’ll probably see a steady or a slight decline in single-parent captives, which is a lot to do with the merger and acquisition activity. The result of this activity will be a bigger market in single-parent captives in terms of premium volume or assets but smaller in number.”
He added: “Similarly, for group captives and risk-retention groups, I think it will probably be steady but an increasing market in terms of premiums and assets.”