Captive insurance companies are increasingly moving beyond traditional property coverage to address a wider range of emerging and difficult-to-place risks, according to Rob Geraghty, Managing Director and International Sales and Consulting Leader at Marsh. Speaking to FERMA Forum Today, Geraghty said Marsh recorded 118 new captive formations globally in 2025, highlighting continued interest in captives even though commercial insurance market conditions have become less challenging. The development suggests that companies are increasingly viewing captives as a strategic risk-financing tool rather than simply a mechanism for reducing insurance costs.
Property remains the largest line of business for captives, but several “growth risks” are gaining ground. Cyber risk is the largest emerging area, while political risk, supply-chain disruption, trade credit, reputational risk, intellectual property, environmental risks, product liability, crime, employee benefits and errors and omissions are also seeing increased interest. The top 10 growth risks generated around $2 billion in premium last year, compared with about $1 billion the previous year. Supply-chain risk, including exposures associated with disruptions around the Red Sea and Strait of Hormuz, is also becoming a newer area of captive interest as companies examine gaps in business interruption and contingent business interruption protection.
Captives typically begin with one or two lines of business, often property, before expanding as companies build experience, surplus and confidence. Marsh is also seeing greater interest in structured reinsurance and customised multi-year arrangements, with some programmes running for three to five years. The planned UK captive regime could provide another growth opportunity, with proposed approval timelines of four to six weeks viewed positively by Marsh. The broader trend is toward using captives as a central point within enterprise risk financing, combining risk retention with commercial insurance and reinsurance to address emerging exposures and improve the overall resilience of corporate insurance programmes.
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