Asia is warming to the idea of captive insurance as more groups realise its long-term strategic value, according to global broker Aon.

A captive insurer provides cover to its parent group. It may be domiciled onshore or offshore, and may also write business for unrelated parties.

The proportion of captive owners from Asia rose to 23% from 17% in 2013.

“The Asian captive market is expected to continue its upward trajectory and will, in the main, underwrite traditional lines such as property and liability risks,” Aon’s third annual Asia Market Review says.

“We expect well-established captives will be looking to expand their insurance portfolios into areas where traditional insurers do not provide a complete solution.

“Exposures such as cyber risk, environmental liability, trade credit and employee benefits are likely to find their way into captive programs where the risks can be incubated or tailored hybrid solutions can be adopted.”

Health-related industries, mining and energy, construction and technology are expected to lead the growth of captive insurers in the region.