{"id":926,"date":"2024-09-16T15:46:00","date_gmt":"2024-09-16T15:46:00","guid":{"rendered":"https:\/\/iqeq.com\/mu\/insights\/the-rise-of-captive-insurance-in-mauritius-as-a-strategic-value-add\/"},"modified":"2025-08-29T12:24:27","modified_gmt":"2025-08-29T12:24:27","slug":"the-rise-of-captive-insurance-in-mauritius-as-a-strategic-value-add","status":"publish","type":"post","link":"https:\/\/iqeq.com\/mu\/insights\/the-rise-of-captive-insurance-in-mauritius-as-a-strategic-value-add\/","title":{"rendered":"The rise of captive insurance in Mauritius as a strategic value-add"},"content":{"rendered":"
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By Lorna Pillay, Head of Corporates and Asset Owners,\u00a0 Africa, India and Middle-East, and Shaun Geils, Global Head of Insurance<\/em><\/p>\n

The vast majority of corporates, from the small to the globally renowned, must contend with the balance between profitability and risk management to sustain business growth. The more mature the business, the more sophisticated the solution required to appropriately manage risk and enhance profitability. Often, this means that traditional insurance options can no longer provide the level of flexibility required.<\/strong><\/p>\n

Worldwide markets, including emerging markets such as India and Africa, are turning their attention to captive insurance as a strategic solution to the profitability vs risk management problem. In Aon\u2019s 2023 Global Risk Management Survey<\/a>, 25% of respondents indicated that they currently use a captive (up from 17% in 2021). An additional 6% plan to establish one in the next three years.<\/p>\n

This article explores why Mauritius is the captive insurance domicile of choice for African and Indian conglomerates, and how captive insurance can help corporates unlock new paths to value as they grow.<\/p>\n

What is captive insurance?<\/h2>\n

Captive insurance is a type of self-insurance where a company establishes its own insurance company, called a \u201ccaptive,\u201d to manage its risk. The captive is owned and controlled by the parent company and can provide coverage for the parent company and its subsidiaries.<\/p>\n

For conglomerates with complex operations, the benefits of structuring captives<\/a> can be substantial. Captive insurance can optimise risk financing, enhance cash flow, and eventually return profits to the group. As a value-add service, captives align well with the strategic goals of companies seeking to effectively manage risk while retaining greater financial control.<\/p>\n

Core benefits of captive insurance include:<\/p>\n