Marsh 2025 Captive Report: Captives Retain More Risk in 2024

Marsh has published its 2025 Captive Benchmarking Report, offering detailed insights into the performance, trends, and strategic use of nearly 1,500 Marsh-managed captives globally. According to the report, Marsh has assisted in forming approximately 500 new captive insurance companies over the past 5 years, including 92 in 2024.  

Per the report, gross written premium (GWP) in Marsh-managed captives rose 6 percent in 2024 to $77 billion, driven in part by concerns over volatility in commercial insurance and reinsurance markets. The report highlights that premiums increased across property, workers compensation, auto liability, and excess liability lines, with auto liability seeing an 80 percent rise compared to 2023. 

According to Marsh, captive insurance companies are retaining more risk, with new formations retaining over 55 percent of additional premiums written in 2024. Large, established captives retained 8 percent more risk than the prior year. This trend is attributed to both challenging commercial market conditions and greater confidence among captive owners in managing retained risks. 

The report notes that captives are writing more lines of coverage, contributing to premium growth. On average, established captives added one or two new product lines in 2024, such as cyber, directors and officers liability, trade credit, political risk, and supply chain risks. Marsh found that financial institutions' captives write the most lines on average, with six, while retail, wholesale, and transportation captives each average five lines. 

According to Marsh, captives continue to expand their cyber risk coverages, with Marsh-managed captives writing more than $170 million GWP in cyber risks in 2024, up from $30 million 5 years ago. The report also highlights the launch of Edgware Re, a cyber-only group captive designed to provide pricing stability, contract certainty, and shared cybersecurity best practices for its members. 

Per the report, Marsh-managed captives are writing higher coverage limits, particularly for cyber, excess liability, and property risks, where limits range from $10 million to $100 million. Other coverages typically feature lower limits, such as $750,000 or less for auto, workers compensation, and general liability. 

Marsh said alternative risk transfer innovations, including parametric solutions, are gaining traction among captive owners. The report points to applications like deductible buydowns for natural catastrophe risks and solutions for uninsurable events such as non-damage business interruption. 

According to Marsh, optimization is a key priority for established captives, with organizations seeking to align captive operations with strategic objectives. The report notes that Marsh conducted more strategic reviews than feasibility studies for the first time in 5 years, reflecting proactive efforts to refine captive structures and risk retention strategies. 

The report also highlights growth in the use of cell captives, which offer quick setup and lower capital requirements. About 15 percent of Marsh's largest captive clients use multiple risk-taking vehicles, including cell captives, to manage their risks. 

Finally, Marsh emphasized the role of captives in supporting nonfinancial objectives, including sustainability and enhanced risk governance. According to the report, captive owners demonstrate stronger performance in areas such as climate change adaptation, community vitality, and corporate governance compared to organizations without captive insurance companies.