Key Emerging Risks for Captive Insurance and Risk Management


Captive Use Trends & Innovations | Steven Bauman | Head of Global Programs and Captive Practice North America | AXA XL


Captives can play an important role in emerging risks such as cyber risks or with volatility such as that seen with property risks, according to Steven Bauman, head of AXA XL's global programs and captive practice in North America. Captives are in a better place now because over time they have gained the confidence of risk managers and senior corporate leadership. This has given captives latitude to be more involved in emerging risks. Over decades, organizations have built up significant capital and surplus in their captive insurance companies. Applying a captive's surplus to emerging risks and potential volatility is an excellent risk management strategy.

Captive insurers with a long history of risk management can tackle emerging risks more easily in partnership with a commercial insurance company that can provide a captive with access to additional data, analytics, knowledge, and experience that is otherwise unavailable to the organization.