Despite a challenging economic environment in 2009, the number of captive domiciles remained stable. New territories promoted themselves as captive domiciles, often successfully drawing local businesses seeking to establish captives closer to home. Nonetheless, the continuation in captive incorporations is unlikely to result in a net gain of captives, as 2009 saw a number of captive closures. The closures could be attributed primarily to parent company bankruptcies, the consolidation of multiple captives following mergers and acquisitions, and companies seeking to reduce costs.

In 2010, as organizations look to optimize risk financing, some may purchase less insurance and increase retentions. Whenever retention levels increase significantly, growth in the captive market tends to follow.