Long reads

While the majority of captive owners were not directly impacted by the Los Angeles wildfires, the fallout from the blaze is leading to more companies exploring the possibility of utilising their captives to write weather-related property risks.

If title insurance was mentioned to most captive owners, there is a chance they will not have heard of it, and it is even more unlikely that they are utilising their captives to write it.

Due to spiralling rates in recent years, property has been one of the main drivers behind captive utilisation in the real estate market, though momentum is starting to shift.

There is an unrealised capacity when it comes to family offices utilising captive insurance to enhance risk management strategies and their premium spend amid a more uncertain global landscape.

When it comes to generating surplus, captive owners operate differing strategies, with some insureds intent on posting a large profit, while others utilise the captive primarily to reduce premium spend and remain content to simply breakeven.

North Carolina’s flexible legislation and experienced regulatory team are two of the main drivers behind the jurisdiction’s steep climb to become one of the fastest growing domiciles in the United States over the past ten years.

Potential cost savings and improved benefits plans for employees are the two biggest drivers behind the growing trend of companies utilising captives to reinsure international employee benefits programmes.

While the commercial insurance market is beginning to soften for businesses in the legalised cannabis sector, captives continue to provide a popular option for risks that remain challenging such as liability and property.