About 22% of Marsh-managed captives with $US18.7 billion ($26 billion) in combined premium wrote third-party business last year, the global broker says.

The figure represents a 12% rise from 2017 and 62% over the past five years.

Technological advances such blockchain and mobile applications are presenting captives with new ways to deliver insurance solutions to clients and suppliers.

“The wave of digitisation across industries, including insurance, is creating opportunities for captives to invest in technology innovations that can reduce administrative expenses,” Marsh says in a report.

“As digital experiences reshape consumer expectations, businesses are taking cues to deploy technologies that make it easier for users to find information and complete transactions.

“For captives, innovations such as blockchain and mobile applications represent new risks to insure. They can also reduce operating expenses by facilitating the distribution of policy information, proof of insurance and claims payments.”

Writing third-party risk earned captives about $US162 million ($234.3 million) in net premium last year.

The Asia-Pacific region saw 11 captives established between 2014 and last year, and the sector has about $US1.1 billion ($1.6 billion) in gross premium.