Market News

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

AM Best has withdrawn Agrinational Insurance Company's ratings after the Vermont-based captive insurance company, owned by ADM, left the interactive review process. The move may affect reinsurance access and highlights the reliance of parent-backed captives on their parent's credit profile amid growing regulatory scrutiny and calls for stronger governance. Read More

Sam Komo, captive manager with the Missouri Department of Commerce and Insurance, advocates rethinking how captive domiciles are evaluated. Rather than focusing on captive counts and premium volume, he recommends assessing service quality, specialized expertise, and regulatory relationships to find domiciles that align with a company's specific objectives. Read More

Swiss Re estimates $80 billion in global insured losses from natural disasters in early 2025, driven by record-setting California wildfires and US thunderstorms. Wildfire claims alone reached $40 billion. With hurricane season ahead, total losses could exceed projections. Urbanization and climate conditions continue to amplify the financial toll of catastrophes. Read More

Parametric risk transfer tools, though not always classified as traditional insurance, can work in tandem with captive programs to support rapid recovery from climate-related catastrophes. Dr. Marcus Schmalbach explains how companies can use captives to fund customized, trigger-based solutions that protect physical assets and enable immediate post-event response. Read More