CaptivesattheCore:TheFoundationofaRiskFinancingStrategyTHECAPTIVELANDSCAPEMAY2017HoworganizationsaroundtheworldusetheircaptiveinsurersiiExcellenceInRiskManagementXIVCaptivesattheCore:TheFoundationofaRiskFinancingStrategyTHECAPTIVELANDSCAPEMAY2017CONTENTS1Introduction2UnderstandingtheSteadyGrowthofCaptives6TheSpreadIntoNewGeographiesandIndustries14CaptiveStructuresOfferFlexibility20Recommendationsmarsh.com1IntroductionThismarksthe10thyearthatwehavepublishedanin-depthcaptivereport.Basedondatafromover1,100captivesmanagedbyMarsh,thisyear’sreportfocusesonunderstandinghowcaptivesarebeinguseddependingongeography,riskissue,and/orindustry,surfacingopportunitiesthatmayexistforgreaterutilization.We’veseenmanychangesin10years,themostobviousofwhichisthedramaticriseinnumbers:In2006,therewereapproximately5,000