Marsh has reported continued growth in captive insurance activity, with gross written premium in Marsh-managed captives rising by six per cent to US$77 billion in 2024, according to its newly released 2025 Captive Benchmarking Report. The report, which analyses nearly 1,500 Marsh-managed captives globally, highlights rising risk retention, expansion into new lines of cover, and a growing strategic focus from captive owners as commercial insurance conditions remain challenging. Marsh supported the formation of 92 new captive entities in 2024, bringing its five-year total to around 500 — a sign of continued demand for customised, flexible risk financing solutions. Premium increases were recorded across multiple lines of business. Auto liability premiums rose by 80 per cent year-on-year, while workers’ compensation increased by 11 per cent, excess liability by 24 per cent, and property by 10 per cent. Captives also retained more risk in 2024, with new formations holding over 55 per cent of additional premiums written, and large, mature captives retaining 8 per cent more risk than in the previous year. Cyber cover continued to expand rapidly, with Marsh-managed captives writing more than US$170 million in cyber GWP — up from US$30 million five years ago. The report also highlights the creation of Edgware Re, a cyber-only group captive launched to provide pricing stability and shared cybersecurity insights. For the first time in five years, Marsh conducted more strategic reviews than feasibility studies, indicating a shift in focus from formation to optimisation. Captive owners increasingly explored how to align captive programmes with broader risk and capital strategies. Interest also grew in alternative solutions such as parametric cover for risks like non-damage business interruption. Established captives added one or two new lines of business on average in 2024, including directors and officers liability, political risk, trade credit and supply chain risk. Financial institutions’ captives wrote the highest number of lines on average, with six, followed by captives in retail, wholesale and transportation sectors, which each averaged five. William Thomas-Ferrand, global leader for captive solutions at Marsh, says: “More organisations today are recognising the value of using a captive as part of their risk management strategy, regardless of market conditions.” He adds that there is increased interest from captive owners to “strategically find ways to optimise their captives to align with their evolving needs”.
