The global captive insurance industry has reached a critical inflection point in 2025, with over 10,000 risk-bearing entities now operating worldwide—a figure that encompasses traditional captives, protected cells, innovative series LLCs, and other Risk Bearing Entity (RBE) structures. This comprehensive market analysis reveals an industry writing approximately $62 billion in direct premiums annually, positioning captives as essential components of sophisticated risk management strategies rather than alternative solutions.
The captive insurance sector continues to outperform traditional commercial insurance across virtually every meaningful metric. AM Best's analysis confirms that captives maintain a five-year average combined ratio of 83%—a 17-point advantage over the 100% average of commercial casualty peers. This performance differential reflects the fundamental advantages of captive structures: disciplined underwriting focused on known risks, enhanced claims management aligned with parent company objectives, and operational efficiency that minimizes administrative leakage.
The industry's evolution toward cell and series structures represents more than operational innovation—it reflects fundamental market democratization. These structures enable mid-market companies to access captive benefits previously available only to Fortune 500 organizations, while providing large corporations with granular risk management capabilities for subsidiaries and specific business units. Download the full report to access the comprehensive 17 page market analysis.
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