Article

2024 was a milestone year for captive insurance growth, with significant expansion across the industry. The number of captives worldwide increased to an estimated 8,000 (C.I. estimates that total risk-bearing entities now exceed 10,000), writing approximately $50 billion in premiums.

This growth was driven by several factors:

• Economic conditions: Tough global economic conditions and a hard traditional insurance market led companies to seek more affordable coverage and greater control over their risks
• Formation trends: Captive formations significantly outpaced closures for the fourth consecutive year, with an average of nearly 3 new captive formations for every 1 closure
• Domicile growth: Established domiciles like Vermont, Utah, and Missouri experienced continued growth. Vermont, the largest US captive domicile, licensed 26 new captives by May 2024, bringing its total to 690
• New domiciles: France emerged as a significant new captive domicile, demonstrating the potential for growth in the European market
• Diverse structures: Cell captives were the most formed structure (38%), followed closely by group and single-parent captives (29% each)
• Premium growth: The average total captive premium amount increased slightly to over $1.3 billion, up from $1.2 billion in the previous year. Industry experts expressed optimism about the future of captives, with survey respondents rating the industry's outlook a 9 out of 10 for the third consecutive year

This growth trend is expected to continue into 2025, driven by increased awareness of captive benefits and the challenges faced by traditional insurers. C.I. provides solutions for high performing businesses across the world, reach out to C.I. and we will work with you every step of the way to guide you through the process from start to finish.