By Lorna Pillay, Head of Corporates and Asset Owners and Tony Laguette, Associate Director, Business Development
Balancing profitability with effective risk management is a priority for businesses of all sizes. As organisations grow and their risk profiles become more complex, traditional insurance solutions often struggle to provide the flexibility required. This has fuelled growing global interest in captive insurance, particularly across Southeast Asia, India and Africa.
According to Aon’s 2025 Global Risk Management Survey, 26.1% of respondents either already have a captive structure in place or plan to create one, highlighting strong momentum in this space.
This article explores why Mauritius is emerging as a preferred captive insurance domicile for African and Indian conglomerates, and how captive structures can unlock additional strategic and financial value for maturing organisations.
What is captive insurance?
Captive insurance is a form of self-insurance in which a company establishes its own licensed insurance entity, known as a “captive”, to insure and manage its internal risks.
How captives work
- The captive insurance company is owned and controlled by the parent organisation
- It provides insurance coverage to the parent company and its subsidiaries
- It enables tailored risk management strategies while retaining premiums and profits that would otherwise be paid to commercial insurers
Why corporates use captive insurance structures
For diversified or fast-growing conglomerates with complex operations, the benefits of structuring captives can be substantial. Captive insurance can optimise risk financing, enhance cash flow and ultimately return underwriting profits to the group.
As a strategic value-add, captives align well with the objectives of organisations seeking greater control over risk, enhanced financial efficiency and long-term sustainability.
Core benefits of captive insurance
- Control: Greater oversight of risk management strategy and insurance costs
- Customisation: Insurance coverage tailored to the specific needs of the parent company
- Investment potential: Ability to generate investment income from retained premiums
- Reinsurance access: Improved entry into global reinsurance markets
- Performance: Captive structures often outperform traditional commercial casualty programmes
Why Mauritius is becoming a leading captive insurance jurisdiction
Mauritius has steadily gained recognition as a leading captive insurance domicile, combining regulatory flexibility, economic incentives and proximity to key markets.
Key advantages include:
- Favourable tax regime with substance requirements: Captives in Mauritius benefit from a 10-year tax holiday, significantly enhancing financial viability. Mauritius also offers an extensive network of double tax treaties that support tax efficiency
- No foreign exchange controls: The absence of currency restrictions simplifies cross-border transactions and optimises capital management
- Robust and progressive regulation: Mauritius’ Financial Services Commission (FSC) has implemented a supportive regulatory framework, including recent amendments to the Captive Insurance Act permitting third-party captives
- Operational efficiency: Compared to more established captive domiciles, Mauritius offers lower operating costs while maintaining access to skilled professional services and high regulatory standard
- Strategic access to Africa: As a gateway to African markets, Mauritius is an attractive base for conglomerates with regional expansion strategies
Key trends shaping Mauritius-based captives
As profitability improves across Indian, Southeast Asian and African conglomerates, establishing a captive insurance company is increasingly viewed as a natural progression in strategic risk management.
Several key trends are currently shaping the future of captives in Mauritius:
- Coverage of non-traditional risks: Increasing use of captives to insure cyber risk, political instability and supply chain disruption
- Healthcare, life and annuity captives: Rising demand reflects broader global shifts in employee benefits and long‑term risk planning
- Emergence as a reinsurance hub: Mauritius is positioning itself as a regional hub for reinsurance captives, attracting growing interest from Africa and beyond
Contact us to discuss captive insurance in Mauritius
IQ-EQ has deep expertise in the regulatory, operational and financial complexities of captive insurance structures. Contact our team to learn how we can support the establishment and ongoing management of your captive insurance company in Mauritius.
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