Market News

February "CICR" Looks at AI for Modeling Hurricane Risk

February 6, 2023

Don't miss the February issue of "Captive Insurance Company Reports" ("CICR"), which looks at the role that artificial intelligence (AI) and big data might play in better understanding hurricane risks and potential losses. Read More

Commercial Insurance Price Increases Continued To Moderate in Q4

February 6, 2023

Global commercial insurance prices increased 4 percent during the fourth quarter of 2022, as the pace of quarterly increases continued to slow, according to the "Marsh Global Insurance Market Index." Prices had previously increased 6 percent during the third quarter and 9 percent in the second quarter. Read More

2022's Strong Pace of Captive Formations Expected To Continue in 2023

February 1, 2023

New captive insurance company formations continued to be strong in 2022, and captive formations are expected to remain at a high level in 2023 amid continued high rates in the traditional commercial insurance market, captive regulators say. Read More

Return-on-Equity, Cost of Capital Gap Driving Reinsurance Prices Higher

February 1, 2023

A persistent gap between return-on-equity ratios and the overall cost of capital is a key factor in higher reinsurance prices, according to A.M. Best. While the reinsurance segment's return-on-equity ratios have been approximately 4 to 5 percent, the cost of capital in the market is at least twice that. Read More

North Carolina Added 62 New Captive Insurance Companies in 2022

January 31, 2023

North Carolina licensed 62 new captive insurance companies in 2022, increasing the domicile's total number of captives to 294. North Carolina is one of the younger captive insurance domiciles in the United States. North Carolina lawmakers passed the state's captive statute in 2013. Read More