The Evolution of Captive Insurance and Risk Management


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


Captive insurance companies have evolved into tools that allow organizations to implement their risk management strategies in a much more comprehensive way, according to Steven Bauman, head of AXA XL's global programs and captive practice in North America. Captive insurers are involved in all types of risks from traditional risks like property risk to emerging risks like cyber risk. Captives now are getting more involved in risks like employee benefits, pension liability, and weather risks. Through their long history, captives have gained the confidence of risk managers and senior leadership to evolve into enterprise risk management tools.

The evolution of captives being used in areas such as pension risks, parametric coverage participation, or employee benefits allows for practical application across the entire risk profile of a corporation. Captive use has been extended to encompass a much more comprehensive area for corporations that are using them over a much broader, wider spectrum.