Macquarie Insurance Facility (Macquarie) has introduced a rent-a-captive insurance product for property and casualty risks, designed to support businesses seeking the advantages of captive insurance without the significant upfront investment.
The new solution allows firms to tap Macquarie’s captive insurance capabilities, gaining the benefits of customised risk retention, enhanced control, and effective risk management – all without the expense and operational responsibilities of creating a standalone captive.
“Macquarie joining the rent-a-captive market provides an opportunity for our clients to simplify their insurance needs,” said global head Nick Wilski, whose camp was approved as a Lloyd’s coverholder earlier this year and currently has a binding authority agreement with Mosaic Insurance.
“By offering clients the opportunity to leverage the benefits of captive insurance, without the operational burden, we’re providing an efficient, flexible, and tailored insurance solution.”
As one of the biggest insurance aggregators in the world, Macquarie oversees approximately US$1.6 billion of premium spend annually from private equity, infrastructure, energy, and real estate firms. Its captive trades as Macquarie Infrastructure Reinsurance Company.
Citing an EY report, Macquarie highlighted that captive insurance makes up nearly a quarter of the entire commercial insurance market.
“With a hard market continuing in commercial insurance, captives have become a fixture on the industry landscape,” EY reported in its 2024 Global Insurance Outlook. “Up until a few years ago, captives were rightly considered to be part of an alternative risk transfer market. That is no longer the case. Nearly every Fortune 500 firm owns and operates its own captive insurer.
“Captives now represent nearly 25% of the overall commercial insurance market, having diverted hundreds of billions of dollars in premiums from traditional channels in the last decade. The European captive market is also growing, thanks to a friendly legislative and regulatory environment in multiple jurisdictions.”
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