Market growth continues with innovation and long-term value

Dan Towle (pictured), president of the Captive Insurance Companies Association (CICA), looks at where the global captive market is in 2025.

As global markets face mounting uncertainty and complex challenges, the captive insurance industry continues to thrive and remain strong as a vital risk management solution. Whether addressing economic volatility, hard market conditions or catastrophic events, captives are providing more strategic solutions than the traditional market.

The recent strong statistics in new captive formations have been notable as have the continued growth of existing captives in increasing their retentions and expanded utilisation. Historical trends indicate that once organisations recognise the advantages of captives, premiums tend to remain within the captive market and do not return to the traditional marketplace. I do not expect that to change.

Educating the broader market continues to be vital to growth

Advocating for captive insurance and promoting its benefits to a wider audience is now more important than ever as there continues to be many misperceptions about the business purposes of captive insurance.

It is important to recognise that many organisations, including nonprofit companies, government entities, hospitals, religious groups and universities, also appreciate the enhanced risk management and financial efficiency that captives offer.

This is a niche industry, and the lack of knowledge in the legitimacy and business purpose of captives often leads to misunderstandings. If you have an opportunity to educate your congressional delegation or local legislators, now is the time to speak up. This is one reason why CICA has increased its investment in federal advocacy to a far higher level in recent years.

Risk managers often serve as primary advocates for captive insurance, both within and outside their organisations. Joining associations such as CICA helps provide you with education and opportunities to connect with other captive owners to share advocacy strategies and best practices. These resources can enable you to gain practical insights and tools to help your organisations anticipate, adapt  and thrive amid uncertainty.

“Once organisations recognise the advantages of captives, premiums tend to remain within the captive market and do not return to the traditional marketplace.” 

Talent and tools for the future

When considering resources for growth and innovation, it is evident that human capital continues to remain the insurance industry’s most valuable asset. The remarkable expansion of captive insurance has enabled professionals who have joined in the past five years to gain a significant breadth of experience at an accelerated pace that did not occur previously.

The integration of artificial intelligence (AI) is becoming an increasingly important aspect of this progress, contributing to improved efficiency. That said, AI will not replace the relationships and skilled counsel of a trusted partner any time soon. The industry continues to rely heavily on personal relationships and the knowledge, skills and expertise of key individuals remain indispensable to programme success.

We should continue supporting knowledge transfer and professional growth for new industry members. Mentorships and internships help college students and new professionals explore careers in captive insurance. Encourage their attendance at events such as the CICA International Conference and their participation in programmes such as CICA’s NEXTGen and Amplify Women to gain experience, network and develop skills. It is vitally important that the younger generation knows we are investing in their future.

International competition drives growth

The growth we are seeing in Europe has really been impressive and it has been exciting to watch the UK potentially become its newest captive domicile. Competition was very beneficial to the growth in the North American market and has helped raise the bar of regulatory excellence. The increased domicile options will undoubtedly mark a new era of growth for Europe.

I look forward to this continued period of change for captives, marked by growth, strategic development, international progress and the introduction of new talent in the industry. This is an exciting time to be in captive insurance.

To find out more visit www.cicaworld.com

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