Australia is the third largest market for captive creation for Marsh, behind the United States and United Kingdom. Corporate Australia has proved to have an agile approach to risk management and companies are increasingly looking towards the most optimal risk retention. Increasingly Marsh is being called to help answer questions on captive solutions, such as what vehicle should retain risk – whether through a captive, protected cell, or trust.
The continuation of the COVID-19 pandemic throughout 2021 will further fuel the growth in the captive insurance market.
For Australia, Singapore is often the most common domicile for such vehicles. This is due to a number of factors including its proximity to Australia, experience with captives, low capitalisation, fair solvency levels, efficient tax system, reputable regular in the Monetary Authority of Singapore, and familiarity with Australian-parented companies.
With this challenging commercial market, now is the time for companies to review the optimal usage of their captive, or if companies do not currently have a risk retention solution such as a captive, protected cell, or trust, then we suggest they start discussions as to whether one could work for them. Companies should aim to do this well in advance of renewal to make sure they are in the best position possible when negotiating with the market.
Marsh Captive Upside: 20/20/20 webcast series
Our global webcast series Marsh Captive Upside: 20/20/20 provides 20 minutes of insight, 20 after the hour, all throughout 2020.
The impact of the COVID-19 pandemic, coupled with a transitioning insurance market, has driven interest in captive utilisation to unseen levels. These webcast sessions are designed to provide digestible pieces of advice and resources to captive owners during this period of uncertainty. Our experts deliver the information captive owners need now to respond to current conditions as well as to strategise for the future.