☰Usually, yes, and many captives are underutilized in this way. Programs tend to start narrow, one line, a modest retention, heavy reinsurance, and the structure that was prudent at formation is rarely revisited. Oftentimes, the review cadence is positioned too closely to renewal to create the adequate space to consider a change. There is a compounding effect waiting in expansion: premium from one line can support the losses of another, so each addition tends to be more capital-efficient than the last.
Expansion follows a recognizable ladder. A captive can fill gaps the market excludes, take a quota share alongside your insurer, join the excess tower, reimburse a deductible layer, retain more of the primary risk, and eventually write third-party business for customers and partners. Where your captive should sit on that ladder is a modeling question, run against your actual financials, which is exactly the analysis a live captive model makes routine. Luzern will work with your team to generate a sophisticated model of your program to definitively answer the question.