Airmic Survey Examines Captive Utilization, Governance, and UK Domicile Interest

Airmic's report, Captives: A Resilient Strategy for the Future: The 2026 Captives Survey of Airmic Members, produced in association with captive manager Artex and insurer HDI, examines how member organizations are using captive insurance companies to support risk financing, access reinsurance markets, and address evolving business risks, according to the report. 

Survey respondents reported annual premium volumes in their captives ranging from less than £1 million to more than £200 million. According to the report, captive assets under management also varied significantly, reflecting the diverse size and maturity of captive programs among respondents. 

Captives continue to be used across a broad range of risks. The survey found that property and casualty coverages remain common, while employee benefits and associated stop-loss arrangements are increasingly being written through captive vehicles. 

Business interruption, general liability, employee benefits stop-loss, cyber, and professional indemnity were among the most frequently cited lines of coverage written by respondents' captives, according to the report. The findings suggest that many organizations are using captives to address both traditional and emerging risk exposures. 

The survey found that many respondents are seeking to expand the role of their captives beyond traditional insurance functions. According to the report, 76 percent of respondents already make substantial use of their captive for insurance purposes and plan to use it for additional coverages or services, including risk management activities, data gathering, and other business functions. 

Commercial insurance market conditions have also influenced captive utilization for some organizations. The survey found that 42 percent of respondents increased their use of captives as a result of commercial market conditions, while 58 percent reported no increase for that reason. 

The report also examined domicile selection among respondents. Guernsey was the most commonly reported captive domicile, followed by the Isle of Man and Vermont, according to the report. Airmic noted that domicile decisions are influenced by each captive's specific business objectives, ownership structure, and regulatory considerations. 

Most respondents reported operating a single captive, although some organizations utilize multiple captives to support different business objectives or geographic needs. Per the report, 86 percent of respondents use one captive, while smaller percentages reported operating two or four captive entities. 

When evaluating fronting arrangements, respondents ranked underwriting flexibility, claims handling capability, collateral requirements, and the breadth of a fronting insurer's local network among their most important considerations. According to the report, flexibility in underwriting was identified as the highest-priority factor when selecting a fronting partner. 

The survey found that many captive owners see opportunities to derive greater value from their captive structures. Respondents cited organizational risk appetite, internal governance and decision-making, captive resources, and data and analytics capabilities as factors that can influence a captive's ability to deliver additional value, according to Airmic. 

Access to reinsurance markets remains an important component of captive insurance strategy. The report found that 34 percent of respondents consider access to reinsurance markets through their captive to be necessary, while another 24 percent described it as critical. According to the report, organizations are increasingly using captives to access broader coverage, optimize capital deployment, and secure additional capacity. 

The survey also explored governance practices. Respondents were divided on whether captive boards possess the right level of independence and expertise to effectively challenge parent organizations. Per the report, 24 percent answered yes, 34 percent answered partially, 38 percent were unsure, and 3 percent answered no. 

Technology adoption emerged as another area of focus. The report found that many respondents continue to rely on spreadsheets and manual processes to manage captive operations, while fewer organizations reported using dedicated captive management software. According to Airmic, improved data management and analytics capabilities may help support more informed decision-making and operational efficiency. 

The survey found significant interest in the United Kingdom's proposed captive insurance framework. Among respondents that do not currently own a captive, nearly half indicated that a proportionate UK captive regime could make them more likely to establish one, according to the report. 

For organizations that already operate captives, respondents expressed varying levels of interest in utilizing a future UK domicile. According to Airmic, some indicated interest in establishing new UK captives, others in relocating existing captives, while some would consider both options depending on the final regulatory framework. 

The survey was conducted in February 2026 and received responses from 70 Airmic members representing a range of sectors, with participation from both existing captive owners and organizations that do not currently operate captives, per the report.