TRENDS IN US CAPTIVES
R&C: How would you describe the popularity of captive insurance in the US? Is appetite for this structure increasing, and what benefits can it offer?
Cunningham: Captives remain a popular form of corporate risk management today due to the need for balanced risk taking and risk financing. We are seeing the continued expansion of US state domiciles, as well as growing popularity with respect to micro-captives and other types of captive structures, such as sponsored cell captives and group captives. Clearly, the popularity of captives remains strong. According to a study by Strategic Risk Solutions, the worldwide captive count stood at 4163 at the end of 2016, up 4.4 percent from 2015. It remains a robust and active industry.
Oct-Dec 2017 Issue