While Connecticut is one of the smaller and newer captive insurance company domiciles, in 2020, the state saw significant growth in captive formations. Last year, Connecticut licensed 6 captives, bringing its total to 22, an increase applauded by the state's top insurance regulator.
The number of licensed captive insurance companies in the Cayman Islands increased in 2020 as new formations outpaced captives that surrendered their licenses. According to newly released statistics by the Cayman Islands Monetary Authority (CIMA), 36 captives were licensed in 2020 compared to the 30 captives that surrendered their licenses.
As information technology becomes more and more a part of operations technology and cyber criminals become increasingly sophisticated, the threat of physical losses resulting from cyber attacks is growing, according to a new report. To date, most cyber attacks have involved information technology rather than physical processes, but that can change.
Bermuda, the world's largest captive insurance domicile with 680 captives, licensed 12 new captive insurance companies in 2020. Those 12 formations were down from 2019, when Bermuda licensed 22 new captive insurance companies.
US (re)insurers will likely increase their engagement with environmental, social, and governance (ESG) factors as a new US administration demonstrates an increasing green focus, according to A.M. Best. With the US return to the Paris Agreement, many US (re)insurers will likely consider ESG factors in investment and underwriting, Best said.