Insurance Marketplace Realities 2027 – Captive Insurance

Growing interest in strategic risk financing

Interest in captives as a strategic risk financing platform continues as global turbulence reinforces the value of robust risk management and differentiated financing strategies. Organizations are increasingly using captives to improve control over retained risks, enhance resilience and support long-term financing objectives.

U.S. domiciles maintain momentum

New captive formations continued to be strong throughout 2026, with many U.S. domiciles reporting mid-year results consistent with the previous three years. Record attendance at captive industry conferences also highlights sustained interest in captive utilization and expansion.

Organizations are increasingly using analytics to optimize captive capital deployment. These insights are helping owners evaluate business plan expansions, determine opportunities for capital returns and maintain sufficient capital to support future insurance market cycles.

Medical stop loss remains a significant area of interest for both new captive formations and existing captive expansions. Rising healthcare costs and the diversification benefits associated with retaining healthcare risks continue to drive adoption.

Bermuda remains a leading domicile

Bermuda registered 31 insurers during the first half of 2026, with activity concentrated in commercial insurers, long-term business and insurance-linked securities (ILS) structures.^[1]

The jurisdiction remains particularly active in alternative capital solutions. During the first half of 2026, 12 restricted special purpose insurers, eight Class E insurers and three collateralized insurers were registered, reinforcing Bermuda's position as a leading domicile for catastrophe bonds, ILS structures and third-party capital solutions.^[2]

Segregated account and incorporated-cell structures also continue to be widely utilized across the Bermuda market.

Cayman continues to expand

Growth in Cayman has been supported by international insurers, single-parent captives and portfolio insurance activity. During the first half of 2026, the Cayman Islands Monetary Authority issued 20 new licenses and reported 17 additional applications under review. This compares with 21 licenses issued during the same period in 2025.^[3]

The market continues to experience growth in segregated portfolios, portfolio insurance companies and group captive participation. According to a recent survey conducted by the Insurance Managers Association of Cayman, group captives collectively serve more than 12,000 members while writing annual premiums exceeding $61 billion.

Footnotes

1. Bermuda Monetary Authority – Insurance Registration Statistics, June 2026 Return to article undo
2. Artemis – Bermuda cat bond and ILS registrations bolstered by first-time sponsors in H1 2026 Return to article undo
3. Source for Cayman data - International Insurance Company Statistics - Licencing Activity Report and Cayman Maintains Strong Growth According to Q2 2026 Licensing Stats Return to article undo