Captives in the Golden Age: Why 2026 Is a Defining Year
As the global risk landscape continues to evolve at pace, the captive insurance market finds itself in a position of notable strength. That is the clear view of Anne Marie Towle, chief executive officer of Hylant Consulting, who believes that despite geopolitical uncertainty, economic caution and technological disruption, the so-called “golden age” of captives is far from over.
Speaking to Captive Review before the Captive Insurance Companies Association’s annual conference, and as the first quarter of 2026 draws to a close, Towle pointed out that the world is still being shaped by the aftershocks of recent upheavals. From tariffs and trade tensions to political instability, extreme weather events and ongoing supply chain fragility, businesses are navigating an environment marked by unpredictability. Yet rather than dampening interest in alternative risk financing, these pressures appear to be reinforcing it.
“There is still a lot of interest in forming new captives,” Towle observes. Even against a backdrop of caution, organisations are continuing to explore structured risk solutions that offer greater control and long-term resilience.
Part of this momentum can be traced back six years, to the onset of the COVID-19 pandemic in early 2020. What began as a distant health concern rapidly escalated into a global crisis that caught many companies off guard. The experience fundamentally shifted corporate thinking around risk.
“It’s hard to believe it has been six years,” Towle notes. “But it changed people’s mindset.”
The pandemic exposed vulnerabilities in balance sheets, insurance programmes and operational models. Business interruption, supply chain breakdowns and systemic shutdowns highlighted the limitations of traditional insurance in responding to systemic shocks. Since then, boards and executive teams have placed far greater emphasis on risk optimisation and balance sheet protection.
Captives – licensed insurance companies established by parent organisations to insure their own risks – have become a key tool in that strategic reassessment. They enable businesses to retain selected risks, access reinsurance markets more efficiently and tailor coverage to their specific exposures.
Towle acknowledges that caution is present in today’s market. Tariff adjustments, political rhetoric and broader economic shifts have prompted organisations to scrutinise budgets and reassess costs. Some lines of coverage, such as cyber liability and property, have experienced softening conditions after several years of hard market pricing.
However, she warns against interpreting softer pricing as a sign that risks have diminished. “There are still problem areas,” she says. Weather-related catastrophes, geopolitical instability and emerging liability exposures continue to pose significant threats. Moreover, even companies operating domestically are not insulated from global ripple effects.
Supply chain dependencies remain complex and interlinked. Adverse weather events in one region can disrupt production in another. Political developments can trigger regulatory or trade changes with immediate commercial consequences. In this context, captives offer flexibility and strategic alignment.
Towle believes many organisations entered 2026 in a strong planning position. After a year and a half of global volatility, risk management initiatives, safety enhancements and loss control investments have been incorporated into budgets. Companies are not merely reacting to crises; they are proactively preparing for what might come next.
“I think the captive market is positioned extremely well,” she says. While there may be moments of hesitation as businesses recalibrate, the broader trajectory remains upward. Looking ahead to 2027, 2028, 2029 and even into the 2030s, she expects continued unexpected twists and turns – and continued demand for structured, forward-looking risk solutions.
Within industry circles, some have described the current era as a golden age for captives. Towle agrees that the fundamentals support that characterisation. Organisations are more sophisticated in their understanding of risk. Boards are more engaged. Regulators in many domiciles have developed mature, supportive frameworks. Data analytics and modelling capabilities have improved.
Even as traditional insurance cycles fluctuate, the strategic rationale for captives has broadened beyond cost management. Today, they are seen as vehicles for strategic enterprise risk management, capital efficiency and innovation. They can be used to address emerging exposures, including cyber, environmental and employee benefit risks, in ways that standard market offerings may not accommodate.
In Towle’s view, this structural shift in thinking is unlikely to reverse. The lesson of the past decade is clear: shocks are inevitable. Preparedness is not optional.
Towle’s perspective is shaped not only by her role in the captive sector, but also by her recent appointment as chief executive officer of Hylant Consulting. Promoted late last year, she stepped into the position in anticipation of profound changes reshaping the insurance and advisory landscape.
The broader Hylant group is celebrating its 90th anniversary, with its centenary on the horizon in 2035. Unlike publicly traded brokers or private equity-backed firms, Hylant remains privately held and family run. That ownership structure influences its strategic outlook.
“We actually plan for decades,” Towle explains. Rather than focusing on short-term profit cycles, the firm invests with future generations in mind. Profitability remains important, but sustainability and adaptability are paramount.
The creation of Hylant Consulting reflects that philosophy. Everything outside traditional brokerage has been brought under a unified consulting banner. This includes global captive solutions, enterprise risk management, cyber advisory, environmental consulting services and employee benefits consulting.
The intention is to position the firm not merely as an intermediary placing insurance, but as a trusted adviser helping clients protect their balance sheets across a spectrum of exposures. In some cases, that may involve an insurance transaction; in others, it may involve strategic risk mitigation without any placement at all.
One of the drivers behind this restructuring is the accelerating role of artificial intelligence in brokerage. Automation is transforming transactional processes, from policy administration to data analysis. As certain elements of brokerage become increasingly commoditised, advisory value must evolve.
Towle recognises that AI will continue to expand its footprint. Rather than resisting that change, Hylant Consulting is investing heavily in technology and technical expertise. The goal is to remain at the forefront of innovation, integrating advanced tools while preserving the human relationships that define the firm’s culture.
“You have to adapt and change,” she says. “If you’re not changing, you’re not growing.”
This forward-looking stance extends to succession planning. The insurance and consulting sectors face significant retirements in the coming decade. Preparing the next generation of leaders is essential not only for individual firms but for the health of the industry as a whole.
By building internal partnerships, investing in talent and embracing technological evolution, Hylant Consulting aims to be relevant in 2035 and beyond. The firm is already mapping out its ten-year plan, envisioning what its 100th anniversary will represent.
As Hylant approaches its centenary, Towle emphasises that growth and innovation are grounded in enduring values. Family ownership has fostered a culture built on honesty, transparency and hard work. Employees and clients alike are treated as part of an extended family.
That heritage underpins the firm’s appetite for long-term investment. Preparing for the fifth, sixth and seventh generations requires more than incremental change. It demands strategic foresight, technological readiness and a willingness to rethink traditional models.
For the captive market and for Hylant Consulting alike, the message is one of cautious optimism. The global environment remains unsettled. Political, economic and climatic disruptions are unlikely to abate. Yet organisations are better informed, more risk-aware and more proactive than they were six years ago.
If the past decade has taught businesses anything, it is that resilience must be built deliberately. In that context, captives are not a passing trend but a structural response to complexity.
As 2026 unfolds, Towle’s assessment is clear: the market is well positioned, the appetite for innovation remains strong, and the golden age of captives still has further to run.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
