Marsh has reported a significant increase in captive insurance activity, with 92 new captive entities formed in 2024 and a total of approximately 500 over the past five years. According to the Marsh Captive Solutions 2025 Benchmarking Report, this rise reflects growing recognition across industries of the strategic benefits captives offer in uncertain risk environments. The report highlights a 6 per cent increase in gross written premium (GWP) for Marsh-managed captives in 2024, totalling US$77 billion. Premium growth was particularly strong in auto liability (up 80 per cent), excess liability (up 24 per cent), workers’ compensation (up 11 per cent), and property (up 10 per cent). Captives are also retaining more risk, with new formations in 2024 keeping more than 55 per cent of the additional premiums written, while large captives on average increased their retentions by 8 per cent. As captives mature, they are writing more lines of business, often adding cyber, D&O, trade credit, political risk, and supply chain coverage to align with owners' evolving strategies. Financial institutions led the way, writing an average of six lines through their captives, while retail and wholesale, transportation, and automotive sectors also showed strong utilisation. Cyber remains one of the fastest-growing lines, with Marsh-managed captives writing over US$170 million in cyber GWP in 2024, including through new vehicles such as the Edgware Re cyber-only group captive. The report notes a rising role for AI in both the risks captives retain and the tools used to manage operations, with Marsh highlighting its AI-powered platforms ReadyCell and Sentrisk. Captives are writing the highest limits — ranging from US$10 million to US$100 million — for cyber, excess liability, and property, with other coverages generally falling below US$10 million. Parametric solutions are gaining interest for hard-to-insure risks like non-damage business interruption and natural catastrophe deductible buydowns. Marsh also reports a trend toward using multiple risk-taking vehicles — such as cell captives and risk retention groups — with around 15 per cent of its largest clients employing this strategy. Cells continue to grow as a quick and cost-effective option, with cyber, property, and professional indemnity among the top coverages written in 2024. Captive optimisation is also accelerating, with Marsh noting a rise in strategic reviews over feasibility studies for the first time in five years. Beyond financial benefits, organisations are also leveraging captives to improve ESG performance, resilience, and long-term sustainability. Marsh concludes that in the face of economic and regulatory volatility, captives remain a resilient tool for managing emerging risks and enhancing strategic risk financing.
