Future of Alternative Risk
Captive Insurance Experts See Major Growth and Opportunity in 2025
By Kevin Cunningham
Industry experts at the International Risk Management Institute( IRMI), predict a continued expansion in the application of captives in 2025, reflecting their versatility in managing diverse exposures. Furthermore, artificial intelligence( AI) is expected to play an increasingly transformative role in the captive landscape, enhancing data analysis, supporting strategic decision-making and improving operational safety according to risk management experts at IRMI.
Additionally, Steve Bauman, head of global programs and captive practice North America at AXA XL, shared his enthusiasm for the expanding role of captives, stating,“ For 2025 and beyond, the increasing maturity and strengthening of captive insurance companies opens increased opportunities for captives to play a bigger and broader role in risk management. I can’ t help but be excited about the partnerships that will be needed in corporate risk management to support the future growth
Editor’ s Note: This is the second edition in a three-part series for Contractors Hot Line, which showcases that the growth of captive insurance is projected to accelerate even further in 2025, driven by companies’ needs to better address increasingly difficult conditions with traditional insurance markets, in addition to growing risk management challenges to adapt to with constantly emerging risks for business owners according to Captive. com.
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of AI and autonomous mobility, and the future of captives is exciting, not only for large corporations but also for many smaller companies that can pursue the captive experience via group, agency or cell captives and embrace risk management resiliency.”
Captive Industry Leadership Outlook
According to the Captive Insurance Companies Association,( CICA) President: Dan Towle:“ The captive industry growth will remain strong through 2025, even with a softening insurance market in some lines of coverage. Companies utilizing captives
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are seeing the long-term benefits in both hard and soft markets and will not be leaving the market anytime soon. The expansion of existing captives and new captive formations will fuel significant premium volume growth, and this will be the year the United Kingdom decides whether it will become a direct participant in the captive insurance industry. If the [ United Kingdom ] becomes a captive insurance domicile, this could potentially mark a new era in captive development and perhaps be the most significant insurance / risk management news of 2025.”
6 June 6, 2025 www. contractorshotline. com