EUROPEAN CAPTIVE MARKET TO GROW IN HARD MARKET: BEST

The hardening commercial insurance market is to drive growth in the European captive market, according to AM Best. In a report, AM Best said increased rates would lead to an uptick in new captive formations and greater use of existing captives in Europe. A number of captives have increased retentions or limits on existing cover, while some have expanded into new lines of business. “Tougher renewal discussions with commercial insurers and challenging economic conditions provide the ideal environment for corporates to look at how they might optimise their risk transfer programmes. This is expected to contribute to an expansion of business volumes for the captive industry,” the ratings agency said. AM Best-rated European captives have not reported significant underwriting losses related to the Covid-19 pandemic, but some had seen premiums reduce, it added.