Captive Insurance Strategies Evolve in 2025: Insights from Airmic Survey

Airmic's 2025 captive insurance survey highlights the integral role that captive insurance plays in risk management and financing strategies. According to the report, captives are no longer just a response to fluctuating market conditions but a fundamental part of long-term strategic planning. The survey includes insights from both captive owners and those considering forming one, indicating continued growth in captive numbers among Airmic members.

Per the report, the demand for captives is expanding globally, with Airmic acknowledging this trend in light of the UK Treasury's consultation on the future of the United Kingdom as a captive insurance domicile. While Airmic members utilize various domiciles worldwide, an additional UK-based option could further enhance the flexibility of risk financing strategies.

According to Airmic, members collectively manage over £22.6 billion in captive assets and place more than £5.1 billion in annual premium through captives. Captive utilization varies significantly, with a substantial portion of respondents writing between £2 million and £5 million in annual premiums, while 17 percent write over £50 million.

The report states that captive insurers continue to expand their scope, underwriting new lines of business. Property coverage has become more common alongside liability, motor, and professional indemnity. Additionally, 44 percent of respondents report writing third-party risks through their captives. This shift indicates a growing recognition of captives as strategic risk-financing vehicles that extend beyond self-insurance.

Per Airmic's findings, nearly half of its captive-owning members adopt a "captive first" approach, making the captive the primary vehicle for insuring group risks. This strategy allows organizations to centralize risk financing and strategically determine the role of reinsurance and commercial market participation.

According to the report, captive utilization has increased due to market conditions, with over two-thirds of respondents reporting higher reliance on their captives in response to insurance market trends. Additionally, one-third of captive-owning Airmic members currently use their captives for employee benefits programs, reflecting a growing trend. Organizations increasingly see the value in using captives to manage employee benefits, such as health and disability insurance, as a way to optimize cost structures and enhance benefits offerings.

The survey reveals that Guernsey remains the most popular captive domicile among Airmic members, followed by the Isle of Man. European domiciles such as Ireland, Malta, and Luxembourg account for a quarter of respondents' captive choices, while Vermont is the most common US domicile.

Per Airmic, multicaptive strategies remain prevalent, with 31 percent of respondents reporting ownership of more than one captive. These structures provide flexibility for organizations managing risks across different jurisdictions, including access to specific regulatory benefits, such as the Terrorism Risk Insurance Act (TRIA) for US-domiciled captives. Companies with international operations often establish multiple captives to align with regional compliance requirements and optimize their global risk management approaches.

The report highlights that while captives generate significant data, many still rely on manual processes. Although most respondents consider their captive data accessible, only a quarter are actively exploring technological improvements for data capture and analytics. The integration of artificial intelligence (AI) in captives is an emerging trend, but challenges remain in implementing AI solutions within existing frameworks. Increased adoption of AI-driven analytics and automation tools could improve captives' ability to assess risk exposure and enhance underwriting precision.

According to Airmic, interest in forming new captives remains high, with 72 percent of non-captive-owning respondents exploring the possibility of establishing one. The increasing mainstream acceptance of captives has led to greater consideration of their strategic advantages across various sectors.

The survey, conducted in early 2025, gathered responses from 79 Airmic members across multiple industries. Responses included both current captive owners and organizations assessing the potential benefits of forming a captive.