Captive Benchmarking Report 2016: Creating Security in an Uncertain World

The 2016 Captive Benchmarking Report examines the role captives are playing in insurance and risk management as exposures continually grow in number, complexity, and severity. Based on data from 1,139 of the 1,250 captives Marsh manages worldwide, the report identifies trends and changes in captive use, providing insights to help you manage risk in uncertain times.

Among the key findings from the report:

  • The number of captives writing non-traditional risks such as supply chain, cyber liability, and political risk, rose substantially in 2015.
  • Most companies (54%) cited increased "discipline and control purposes" as the reason for using captives.
  • Use of captives for multinational employee benefits programs more than doubled in 2015, increasing by 143% as more companies incorporate employee benefits into new and existing captives.
  • Captives are providing additional access to higher coverage limits and more comprehensive coverage for cyber risk, which has grown in frequency and severity.
  • We saw a 17% increase in Marsh-managed captives accessing coverage under the Terrorism Risk Insurance Act in 2015. The report highlights captives that also write a portion of conventional perils in addition to nuclear, biological, chemical, and radiological risk.

The report also analyzes the growth of captives throughout the Americas, Europe, the Middle East, and Asia-Pacific, covers which industries are most inclined to use captives, and discusses tax and regulatory changes affecting captives.