SIIA releases details of 2024 captive survey
The Self-Insurance Institute of America (SIIA) has released the results of its 2024 Captive Survey, which it says demonstrate consistent and encouraging growth for the industry over recent years.
For the third straight year, respondents collectively ranked their sentiments on the future of the captive industry as a 9 on a scale of 1-10. This year’s survey features a general industry section, service provider section, and owners’ section, largely consistent with the previous year’s questions in order to observe valuable year-over-year industry trends. SIIA’s Captive Committee also included new sections this year, targeting medical stop-loss specific captives, brokers, and prospective captive owners to analyse areas of growth in the captive space.
Some of the highlights from this year’s survey include:
• General Industry Outlook Remains High
Captive Survey respondents rated the future of the captive industry a 9 on a scale of 1-10. This is the same result from last year, and similar to the 2022 survey when close to 90% of respondents reported having a bullish outlook on the future of the captive industry.
• Continued Strong Staff Hiring Numbers
Nearly 64% of respondents reported that they have added staff in 2023. Like last year, a significant number of these additions were in management staff, underwriting, sales, and accounting. This result shows a slight decrease from years past which reported 74% (2022) and 66.7% (2021) of respondents adding staff. However, the average and total number of staff added nearly doubled last year’s reported additions. Continued Strong Staff Hiring Numbers
Nearly 64% of respondents reported that they have added staff in 2023. Similar to last year, a significant number of these additions being management staff, underwriting, sales, and accounting. This result shows a slight decrease from years past which reported 74% (2022) and 66.7% (2021) of respondents adding staff. However, the average and total number of staff added nearly doubled last year’s reported additions.
• Captive Formations Again Outpacing Closures
For the fourth year in a row, captive formations have significantly outpaced closures. Survey respondents reported an average of nearly 3 new captive formations for every 1 captive closure per respondent in 2023. This was slightly down from last years survey when respondents reported an average of 4 new captive formations for every 1 captive closure.
• Group Captive Formation
38% of respondents reported cell captives as the captive structure most formed in 2023, with group and single-parent captives coming in a close second at 29%. This is the third straight year in which respondents have selected a different structure as the most formed (Group in 2022, Single Parent in 2021).
• Captive Client Growth
The average respondent reported 548 captive clients being served by their organisation in 2023. This is a large increase from last year’s survey, which reported an average of 206 clients served, as well as 2021 which reported 137 served. The total number of captive clients served by all respondents in this year’s survey was 7,665. This is a significant increase from last year’s total of 5,377.
• Total Captive Premium Amounts Reported Similar to Last Year
The average total captive premium amount was over $1.3 billion, which is a slight increase from last year’s total of $1.2 billion. The median reported total captive premium was nearly $4.6 billion, and the single highest reported total amount was over $8 billion.
For the full results contact the SIIA.
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