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Group captives evolving, still have ‘headroom for growth’ - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Group captives evolving, still have ‘headroom for growth’ by Claire Wilkinson Alternative Risk Transfer/Captives , P/C Insurers The Travelers Cos. Mar 10, 2026 PALM DESERT, California – Group captives have evolved from a niche risk-financing concept into a rapidly growing segment of the commercial insurance market, experts say. They were speaking on Monday during a panel session at the 2026 Captive Insurance Companies Association conference. The U.S. group captive market generates roughly $6.5 billion in premium, up from virtually zero when the first programs began emerging in the mid-1980s, said David Raymond, Hartford, Connecticut-based vice president, specialty group captives at Travelers. More than 90 group captives now service U.S. business, and the segment represents about 6.5% of the roughly $100 billion commercial casualty insurance market, he said. The sector has “headroom for growth,” Mr. Raymond said. “Group captives are a known commodity now and one that people seek out,” said Nick Hentges, CEO of Captive Resources, based in Itasca, Illinois. The concept has come a long way since the early programs formed in the 1980s, when a handful of companies first experimented with sharing risk through a jointly owned insurance vehicle, he said. Group captives are gaining wider adoption as businesses look for ways to reduce insurance volatility and gain greater visibility into their loss experience. A key advantage of group captives is that members own and control the insurance vehicle, allowing them to decide how much risk to retain and how the program is structured, Mr. Hentges said. “They own it. They run it,” he said. Companies that participate in group captives tend to be entrepreneurial and are comfortable managing risk, he said. Many group captives report retention rates of 98% to 99%, significantly higher than in the standard marketplace, he said. For participating companies, a group captive structure encourages collaboration and improved safety practices, said Mark Grothe, Fargo, North Dakota-based risk manager and safety director at PKG Contracting. Members often share risk management strategies and loss prevention ideas, creating an environment that can improve outcomes for all companies in the group, he said. “Before, when I was dealing with our safety program, it came down to zero injuries,” and preventing hazards to keep people safe, Mr. Grothe said. “Now I see it from a broader perspective.” Related News Gulf conflict drives war risk premiums up 1,000% March 10, 2026 CK Hutchison unit seeks $2B over port seizure March 10, 2026 Zurich to acquire Irish firm from Generali for $391M March 10, 2026 Insurers see surge of political violence cover requests March 10, 2026 Santam’s premiums edge higher March 10, 2026 Regional unrest drives higher marine, war risk premiums March 10, 2026 Dual, Liberty Specialty team up on Latin American risks March 10, 2026 Livy Dai takes helm at Lockton China March 10, 2026 Marsh names Studer head of Marsh Risk, succeeding South March 10, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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