Captive Insurance in Focus: 2024 Trends and 2025 Predictions

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, "Breaking New Ground and Paving the Way". Along with other industry leaders, they reflect on the key trends that defined the captive insurance landscape in 2024 and share their predictions for challenges and opportunities in 2025.

In regards to the past year, Michelle states in the article, “one of the biggest issues we noticed throughout 2024 was the rapid evolution and expansion of many of our clients' risk profiles. A number of different (but often converging) issues contributed to this shift, including legislative changes, social inflation, shock verdicts, and emerging climate issues. These seem to have had a significant impact on companies' risk management strategies, especially in terms of the types of risks considered for captive placement.”

In regards to trends and developments, Enoch states in the article, “our biggest opportunity often centers on the development of new approaches and strategies to measure the shifts we are seeing in the overall risk landscape. Adopting a more holistic approach that broadens consideration to all risks, rather than current problem risks, is something that we feel will be an important part of future risk management strategies.”

You can read the Captive Insurance Times issue here. Navigate to pages 42-48 to read the full "Breaking New Ground and Paving the Way" article.

As a reminder, SIGMA's Captive Overview Brochure presents a high-level captive overview, and addresses fundamental questions, such as “What is a captive insurance company?”, “Why would I use a captive over traditional insurance?”, and “How do I form a captive?”. 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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