The captive insurance industry is facing key challenges and opportunities, from emerging risks to talent retention and the rise of tribal domiciles, said panellists at the 2025 World Captive Forum in Florida.
In the session titled ‘Hot Topics in Captive Insurance,’ Renea Louie, CEO at Sotera Global Management, highlighted the industry’s rapid expansion. “The global captive insurance market is projected to hit US$250 billion by 2028, with the industry already growing by 24.8 per cent in 2022,” she stated.
Louie emphasised how captives have transitioned from niche solutions to mainstream risk management tools.
The panelist also addressed technological advancements, stressing that automation and AI can enhance efficiency without replacing human expertise. “Captives can achieve a balance between personal service and operational efficiency,” she said.
However, she warned of regulatory challenges stemming from talent retention issues. “Regulators are struggling to retain skilled professionals, leading to potential gaps in oversight,” she noted, citing a shift toward higher-paying private sector roles.
Leon Rives, chief visionary officer at RH CPAs, echoed these concerns, emphasising the impact of regulatory talent loss. “We need strong regulators in this space, and if their salaries were more competitive, they might be more inclined to stay.”
Joe Marcantel, director at Talisman Insurance, focused on captives’ role in insuring emerging risks. “Traditional insurance struggles to keep pace with evolving industries and threats,” he said.
He pointed to cannabis, active shooter, and carbon credit insurance as areas where captives could step in to provide additional coverages.
Insurtech was another major discussion point, with Marcantel recognising its benefits but stressing the continued need for human involvement. “Policyholders managing high-value assets want direct human interaction, not just AI-driven automation,” he noted.
He also emphasised the need to attract young professionals to the industry. “We must do more to highlight the exciting opportunities within captives,” he said, advocating for stronger university partnerships and mentorship programmes.
Heather McClure, managing partner at Helio Risk, raised the increasing presence of Tribal domiciles — captive insurance entities established within sovereign Native American nations.
“Some of these domiciles are licensing thousands of captives, more than well-established captive states have formed in its entire history,” she noted, questioning how US regulators will respond.
“Are they writing insurance for entities with no real Tribal connection? The answer is yes. This is an area that has more questions than answers at this point, so it is an area to watch.”
McClure also highlighted the growing interest in cyber captives, especially given the volatility in the commercial cyber market.
“If businesses fail to implement the same rigorous loss control measures as traditional cyber insurers, they could be exposing themselves to greater risks,” she warned. Cyber claims are high-severity, low-frequency events, requiring captives to carefully assess their capital adequacy and risk tolerance.
The conversation also touched on increasing physician liability limits in healthcare captives and the rise of commercial exclusions.
“Sexual misconduct claims, pandemic exclusions, and data privacy litigation give opportunities for captives to step in and provide coverage where traditional insurers fall short,” McClure observed.
With the captive insurance landscape evolving rapidly, panellists agreed that investing in talent development through structured education and mentorship would be essential to build the next generation of captive professionals.
