Market News
The Expanding Role of Captives in Today's Changing Risk Market
Captive insurance provides a strategic alternative for businesses seeking cost-effective risk management. By covering hard-to-insure and emerging risks, captives offer flexibility, financial control, and access to reinsurance, making them a valuable tool for organizations looking to mitigate risk and manage insurance costs efficiently. Learn More
Global Commercial Insurance Rates Decline for Second Quarter
Global commercial insurance rates declined 2 percent in the fourth quarter of 2024, per Marsh, marking a second consecutive drop. Property, financial lines, and cyber insurance saw decreases, while US casualty rates rose 7 percent. Regional trends varied, with Pacific rates falling the most at 8 percent, while Latin America and other regions saw modest increases. Learn More
North Carolina's Captive Insurance Sector Continues To Grow
North Carolina's captive insurance industry continues to grow, with over 1,600 licensed entities since 2013. The state's flexible regulations and strong economy attract businesses seeking self-insurance solutions, risk management control, and cost-effective access to reinsurance. Signs point to continued growth in 2025 as companies explore alternative risk transfer options. Read More
Connecticut Captive Insurance Program Sees Continued Growth
Connecticut's captive insurance sector grew by 17 percent in 2024, adding 9 new captives and 17 protected cells. The state's strong regulatory framework, skilled workforce, and updated legislation continue to attract businesses seeking alternative risk financing solutions, solidifying Connecticut's position as a leading US captive insurance domicile. Read More
Survey Shows Strong Growth Potential for DUAE Segment
An AM Best survey highlights strong growth potential for Delegated Underwriting Authority Enterprises (DUAEs), with insurers valuing their specialization, niche market access, and tech-driven capabilities. The report notes challenges in compliance and accountability but underscores DUAEs' role in expanding underwriting capacity and leveraging predictive analytics for competitive advantage. Read More
Why Do Captive Insurance Companies Get Credit Ratings?
Captive insurance companies pursue credit ratings to strengthen corporate governance, improve transparency, and reduce costs. A strong rating reassures reinsurers and fronting companies, potentially lowering fees and premiums. Additionally, captives use the rating process to benchmark performance and gain insights into financial health and best practices. Read More
AI in Insurance: Navigating Opportunities and Risks
Kroll Bond Rating Agency's "AI in Insurance: The Future Is Now" examines artificial intelligence's (AI's) expanding role in marketing, underwriting, and claims processing while addressing regulatory challenges. The report highlights AI's benefits, including efficiency and fraud detection, alongside risks like bias and cyber security, emphasizing the importance of governance and compliance for insurers adopting AI strategies. Read More