Marsh: construction companies using captives
Construction industry companies are increasingly utilising a non-traditional method to manage their risks in the face of challenging insurance market conditions, according to new data from Marsh.
Marsh Captives Solutions’ 2023 benchmarking report shows what Marsh has described as a third consecutive year of impressive global growth of captive insurance.
Property-related captive premiums – which combined with casualty premiums represent 83 per cent of all construction captive premiums placed by Marsh – have grown by 13 per cent in the past two years.
Within this growth, Marsh said that it has seen increased usage of captives for wrap up – including owner and contractor controlled insurance programs – as well as subcontractor default and environmental policies.
“The rise of captives could be driven by consistent increases in the cost of insurance, with Marsh’s Q2 2023 Global Insurance Market Index showing composite pricing rising for the 23rd consecutive quarter, continuing the longest run of increases since the inception of the Index in 2012, combined with reductions in capacity and tighter restrictions in coverage,” said Marsh.
For more information contact Marsh.