The number of captive insurance companies writing third-party business is growing at double-digit pace as the digital era expands the way organisations deliver insurance solutions, according to data from Marsh.

According to the report, 22% of Marsh-managed captives wrote some form of third-party business in 2018, representing a y-o-y increase of 12% and a 62% increase over the last five years. In particular, coverage for contractor, vendor, and customer risk continued its steep growth trajectory, increasing 138% among Marsh managed captives in the past five years. In 2018, Marsh captives writing such third-party risk generated a total of US$162 million in net premiums.

Likewise, Marsh-managed captives wrote more than US$3bn of net premiums for extended warranty coverage in 2018. The number of Marsh captives writing such coverage, which protects a variety of assets from computers to automobiles, increased 22% over the last five years.

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