Captive Market Trends, and Predictions for the Year Ahead

Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant

Michelle Bradley and Enoch Starnes were recently featured in an article by Captive Insurance Times titled, "Going for Gold". Along with other industry leaders, they discuss 2023's captive market performance, trends and developments, and share predictions for the year ahead. 

In regards to the year ahead, Michelle states in the article, “The sustainability of new entrants remains to be seen. One of the biggest challenges is making sure new captives are based on analytically supported strategies. Exiting the traditional market because of the pain of a hard market should be based on long-term strategies and not short-term reactions.” She encourages anyone contemplating the use of captives to spend adequate time reviewing and discussing the guidance offered by their service providers. 

In regards to trends and developments, Enoch Starnes states in the article, “We are seeing a slight shift back to placing more traditional property and casualty coverages in a captive, but interest remains strong for complex and emerging risks. As expected, cyber risk continues to dominate many alternative risk strategy conversations. The somewhat more surprising development, however, is activity happening in the second half of 2023 relating to property.”

You can read the latest Captive Insurance Times issue here. Navigate to pages 20-28 to read the full "Going for Gold" article.

To stay up to date on recent market trends, the team at SIGMA has put together a one page PDF that graphically summarizes how to analyze cyber risk for risk financing strategies. In it, data requirements are reviewed, a summary of the analytical process is outlined, and expectations for the final analysis are laid out. We encourage you to check this resource out, as well as the other tools in our complimentary resource library.

We welcome discussion with any of our insurance colleagues who want a better understanding of these topics, and those wishing to contact us can do so at support@SIGMAactuary.com or by scheduling a call today with one of our consulting actuaries.

© SIGMA Actuarial Consulting Group, Inc.

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