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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

A FREE 12-page special report from Captive.com

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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The World of Captives: Growth and Opportunities without Borders

Earth World Globe
May 21, 2015

Marsh, the world’s largest captive manager, has issued its 8th consecutive Annual Captive Benchmarking Report, which benchmarks the 1,109 captives managed by Marsh globally.

Facts about the Marsh managed captive portfolio selected from the 2015 Report include:

  • Twenty-three percent (83) of the 374 US captives managed by Marsh access the Terrorism Risk Insurance Program Reauthorization Act for property coverage.

  • Only 47 percent of US for-profit companies with captives have achieved insurance company tax statutes and deduct premium paid to the captives.

  • About 36 percent of the US companies that own offshore captives are treated as insurance companies and make a 953(d) tax election.

  • Nontraditional coverage such as trade credit, crime, cyberliability, voluntary employee benefits, group home, group auto, and group umbrella grew by 11 percent from 2013 to 2014.

  • The top 5 industry classifications of the Marsh managed captives are financial institutions (269), health care (153), manufacturing (79), retail/wholesale (63), and transportation (49).

  • Financial institutions own 90 percent of the special purpose vehicles.

  • There was a decrease in offshore to onshore redomestications from 11 in 2013 to 6 in 2014.

  • The 192 captives managed and domiciled in Vermont had $15.5 billion in gross premium, while the 270 captives domiciled in Bermuda had $7.8 billion in gross premium.

  • Less than 5 percent of the Marsh captive portfolio is small captives, taxed only on investment income.

  • GIRT, the Marsh casualty risk pool, had annual premiums of $640 million in 2014.

  • Only 17 percent of the small captives rely on the risk pool.

  • Sixty-nine percent of captives in its portfolio write direct.

A complete copy of the report can be downloaded at the Marsh website. Registration is required.

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