In recent years, the hardening commercial insurance market has prompted captive owners to get more from their risk retention vehicles. It's also seen a growing number of corporations consider captive insurance for the first time, as well as driving significant innovation within the alternative risk transfer solutions arena.

While captives were traditionally used for a parent company's more 'vanilla' risks, this practice is changing. As the risk landscape becomes more intangible, with less capacity for more complex risks within the commercial insurance market, captives are proving a natural home for some of these risks.

This whitepaper considers the evolution of the risk-intelligent captive and draws on the highlights from the 'Insuring the Future' roundtable discussion Artex and Airmic hosted in November 2023. It explores case studies on cyber, geopolitical and UK storm surge risk, highlighting how captive owners can open up their risk retention vehicles to more complex risks, what steps they can take to mitigate some of the more extreme risk scenarios, and the innovative solutions and partnerships that they can achieve.