As we move through the first quarter of 2025, the captive insurance and reinsurance landscape continues to evolve at a rapid pace. This month has seen a flurry of activity that underscores the growing importance of alternative risk transfer mechanisms in global business strategies.
Schedule F is a critical component of U.S. insurance regulation that governs how insurers report reinsurance transactions and manage associated financial risks. In captive insurance arrangements, Schedule F compliance directly impacts collateral requirements to protect against reinsurer insolvency and maintain statutory financial stability.
A large residential property client worked with C.I. to procure a $2.5m Property Policy along with a $400k/$5m General Liability Policy. With over $1bn in total insured values and 10k+ units this client retained 85% of the premium back into their captive on AM Best Rated A+XV Admitted paper.
A large specialty construction company, partnered with C.I. to secure $5 million in excess liability coverage above a $15 million primary layer. The client retains over $2.5 million in gross written premium (GWP) within their captive while satisfying lender requirements. With a 0% historical loss ratio in this excess layer, the client now retains underwriting profits that were previously absorbed by commercial insurers.
The captive insurance industry continues to experience significant transformations in 2025, driven by technological advancements, regulatory changes, and market expansion. At the forefront of these developments is the integration of Artificial Intelligence, which will drive additional growth and increase the bandwith of nearly all firms. Artificial intelligence is being leveraged to analyze data, identify claims trends, and predict potential risks, while blockchain technology enhances transparency, security, and efficiency in policy administration and claims processing. Big data analytics provide deeper insights into risk profiles, enabling data-driven decision-making that optimizes risk management strategies.
The U.S. economy today faces conditions that echo certain aspects of the 2008 financial crisis, yet it also exhibits significant differences. Examining how the U.S. property and casualty (P/C) insurance market performed during both periods offers important insights into navigating current challenges.
The CICA 2025 International Conference, themed "Captives—Better Solutions for Tomorrow's Risks," took place from March 9 to 11, 2025, at the JW Marriott Starr Pass Resort & Spa in Tucson, Arizona. This event brought together over 700 captive and risk management experts, including captive owners, potential captive owners, captive managers, risk managers, domicile regulators, and service providers. C.I. was represented by Nate Reznicek, Joe McDonald, and Luke Renz. Here are some key details and highlights from the conference:
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