Article

The global market for captive insurance has reached a record-breaking milestone, surpassing $200 billion in premiums. This significant growth is largely attributed to companies seeking alternatives as traditional insurers become more restrictive or prohibitively expensive, particularly in sectors affected by climate change.

Notable trends in the captive market include:

• Oil and mining firms increasingly turning to captives as external coverage becomes unaffordable or unavailable
• Climate change amplifying known risks, with captives serving as "shock absorbers"
• Sectors like utilities and renewable energy operators exploring captive options

While the rise of captives offers companies more flexibility in risk management, some experts warn that it could potentially delay the green energy transition. However, proponents argue that captives provide companies time to adapt to changing regulatory environments and manage evolving risks effectively. Reach out to Captives.Insure to see if a captive insurance arrangement is the right solution for your client.