Airmic publishes boardroom must: a captive governance guide

Airmic has unveiled a new report into perfecting governance for board directors of captives.

The report, launched yesterday (June 10) at its annual conference and authored by Noona Barlow, partner and the Head of Financial Lines Claims at McGill and Partners, said that there has been a recent surge in interest both in the UK and beyond around the formation and use of captive insurance companies. 

According to research by Risk Management Advisors, in 2024, there were 8,000 captive insurance companies operating globally and writing well in excess of $50 billion in premiums, with around 20% of captives and associated premiums managed out of the UK and Ireland. These numbers are growing and the classes of cover written are expanding as captives are increasingly seen as effective tools for risk management and self-insurance. The choppy geopolitical and macroeconomic waters which organisations are having to navigate only add to their appeal.

Recognising this trend, in 2024, the UK Government began a consultation process around the use of onshore captives, the aim of which was to explore the possibility that: “... a new approach for the regulation of captive insurance companies in the UK... might make the UK insurance market a more attractive hub for businesses seeking efficient risk solutions”. 

Research conducted by Airmic in 2025 revealed that, of the organisations surveyed, nearly 30% have more than one captive and of those that currently do not have a captive, more than 70% said their organisation is currently exploring the possibility of forming a captive now or in the future.

The aim of the Airmic report is to provide a guide for directors to the advantages and potential pitfalls associated with the creation and running of captive insurance companies. It examines this issue principally from the perspective of the parent company or partnership board rather than that of the captive board and examines 12 questions boards need to answer as a form of a checklist for effective captive creation.

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