Property fast-growing coverage line: Marsh captives
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SAN DIEGO – Captive use continues to grow as climate change exacerbates extreme weather events driving property premium increases, Marsh LLC executives said Tuesday.
Property is the fastest growing line of coverage in Marsh-managed captives, said Michael Serricchio, Norwalk, Connecticut-based managing director of Marsh Captive Solutions.
“Everybody in the room can feel the pain of property rates. Last year, we added $2.5 billion premium to our captives. That’s almost unheard of,” Mr. Serricchio said during a briefing at Riskworld, the Risk & Insurance Management Society Inc.’s annual conference.
Marsh saw 29% growth in captives writing property last year, he said, adding: “The last three years of this challenging market have been brutal.”
Organizations are using captives to provide innovative and integrated approaches to manage new and emerging risks, Marsh LLC executives said.
Risk complexity is increasing, and risk is accelerating in virtually every dimension, said Pat Donnelly, president of Marsh Specialty and global placement.
In the past few years, the transfer of risk in the commercial market has led to fatigue and frustration, Mr. Donnelly said.
“Clients are coming to us and asking us to help them explore, establish and in some cases leverage captive approaches for all the creativity and flexibility and the control that it can give back to organizations as they’re managing their risks,” he said.
Marsh added 500 new captives to its portfolio from 2020 to 2023, bringing the number it manages to more than 1,900 across 56 domiciles, and premiums under management to $73 billion, said Ellen Charnley, president of Marsh Captive Solutions in Las Vegas.
Captives are playing an important role as companies look to navigate through the emerging global threat landscape, Ms. Charnley said.
