Long reads

Bermuda currently has 15 different licence classes, which Richmond says do not only distinguish the types of risk being written but also differentiate the investors and stakeholders involved.

Captives are an attractive proposition for the pharmaceutical, biotech and life science industries, due to a lack of appetite and capacity being offered by the commercial market, particularly for product liability cover.

Tennessee’s business friendly environment and ‘say yes’ attitude are two of the reasons behind the jurisdiction’s continued growth as a captive domicile.

Formations of new captives in the first quarter of 2025 were driven by real estate and construction companies with more than 20% coming from those sectors.

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.