Long reads

Although having a limited direct impact on captives, the recent CrowdStrike incident will likely lead to more companies assessing the possibility of utilising their captives to write cyber risk.

Confidence is growing that Abu Dhabi can position itself as a strong domicile choice for existing and prospective captive owners in the region and further afield, with several applications in the pipeline.

As the United States presidential election approaches on Tuesday 5 November, captive owners and consultants should be mindful of what implications different outcomes would have for the industry and captive strategies.

Captives are enhancing their use of claims technology, often provided by expert claims companies, as a means of reducing the number and cost of claims, as well as increasing the speed of handling.

With overnight borrowing rates anticipated to come down this year, captives may be advised to alter their investment strategies and invest in intermediate maturity, high quality fixed-income sectors to maximise returns from a changing fiscal environment.

Captive recruiters are expanding beyond traditional areas to attract talent from other areas of the insurance sector as well as from entirely different industries, aiming to address an alarming talent shortage in the industry.

A growing number of companies in the mining, metals, oil and gas sectors are looking towards captive utilisation, particularly in the metals and mining middle market segment, with traditional carriers reducing capacity and increasing exclusions concerning climate risk.

There has been a growth in the number of captive owners looking a utilising their captives to write marine insurance with the availability of accurate data reducing the unpredictability of the risk.