Insurers and reinsurers are increasingly seeking partnerships with the captive insurance market as owners retain more risk and adopt more sophisticated reinsurance structures, according to new analysis shared in September 2026 by Marsh Captive Solutions.
US captive domicile premium is estimated to have grown from $94.3 billion at the end of 2021 to $118.5 billion by the end of 2025, per Captive Review analysis, while global premium is projected to rise more than $17 billion this year to approximately $240 billion. Total premium managed by Marsh-run captives climbed from $77 billion to $79.1 billion, with retentions up 4% even as ceded reinsurance dipped to $11.5 billion from $13.4 billion.
Marsh executives say the drop in ceded premium reflects softer reinsurance pricing rather than reduced risk transfer, with carriers of all sizes now pursuing both fronting and reinsurance roles alongside captives. Captive owners are using this leverage in negotiations with commercial carriers while building diversified portfolios—spanning property, excess liability, cyber and catastrophic exposures—that can support traditional, structured and parametric reinsurance arrangements.
Marsh leaders suggest “consolidation” could become a core rationale for captive use, as owners centralize risk before selecting reinsurance solutions. Conversations with Fortune 500 clients increasingly touch on emerging exposures, including climate, geopolitical and AI-related risks—the latter still difficult to quantify but expected to generate dedicated captive products as understanding matures. Watch for reinsurers to keep courting captives as competition intensifies across commercial insurance markets.
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