Businesses are increasingly relying on captive insurance as a long-term risk management strategy, according to Airmic’s 2025 Captives Survey, conducted in partnership with HDI Global.
The findings indicate growing captive utilisation as organisations seek flexible solutions to manage evolving risks and market volatility.
Airmic members collectively manage more than £22.6 billion in captive assets and spend over £5.1 billion annually in premiums.
Captives are no longer limited to large multinational companies—more than 25% of respondents reported annual premiums between £2 million and £5 million, while 17% indicated premiums exceeding £50 million.
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According to HDI Global’s UK & Ireland chief distribution officer Oliver Davies, captives are being used to address traditional risks while also providing alternative solutions in a changing risk environment.
"The importance of captive strategies is not a passing response to fluctuations in market cover and pricing conditions, but an established part of a future-looking risk management and risk financing strategy and programme," said Davies.
The survey reveals that captives now cover a broader range of risks beyond conventional lines. Property, liability, motor, and professional indemnity remain common, while 9% of respondents underwrite directors & officers (D&O) liability.
Additionally, 44% of respondents indicated their captives are underwriting third-party risks.
Alison Tamm, global risk director at Control Risks, highlighted that captives, while initially formed for specific needs, are often expanded to cover multiple lines of business.
Nearly half of Airmic’s captive-owning members have adopted a "captive-first" strategy, using captives as the primary structure to insure group risks.
IHG director of risk finance Marc Bentley said that consolidating risks within a captive allows companies to optimise long-term financing and assess external reinsurance options.
Market conditions remain a key driver of captive use, with over two-thirds of respondents increasing captive utilisation in response to fluctuations in the commercial insurance market.
One-third of Airmic members include employee benefits in their captives.
Phil Clark, director of insurance at Vodafone Group Services Ltd, reported that integrating employee benefits with property and casualty coverage reduced the company’s solvency requirement by approximately €20 million.
Multi-captive strategies are also common, with 31% of respondents using more than one. This approach offers flexibility, especially for businesses requiring jurisdiction-specific coverage.
Guernsey remains the most common domicile, followed by the Isle of Man. Interest in captive formation continues to grow, with 72% of respondents without a captive considering establishing one.
As captives become a mainstream risk tool, how will their role evolve in future business strategies? Share your thoughts below.
