Opportunities ahead for UK captive market claims Maxwell

Speaking at the AIRMIC Captive Forum in London, Maxwell said she was “incredibly proud” to be taking on the role and paid tribute to the work of her predecessor, Julia Graham, particularly her leadership in advancing discussions around captives.

Maxwell emphasised that AIRMIC’s mission remains straightforward: to serve and support its members, who are primarily corporate risk and insurance professionals. However, she noted that many of those professionals are currently operating under considerable strain as they grapple with rapidly evolving risks.

“There is a lot going on,” she said, pointing to the pace of change across areas such as artificial intelligence, cyber threats and climate-related risks. Questions about how AI will develop, how it will be regulated and how it may interact with emerging technologies such as quantum computing are increasingly prominent in boardroom discussions, she said.

These uncertainties are placing new demands on risk managers, requiring them to navigate risks that are still poorly defined or difficult to quantify. Maxwell said AIRMIC aims to support members through conferences, regional events, specialist groups, professional learning programmes and engagement with regulators.

At the same time, she acknowledged that the association’s network of more than 50 partner firms – including insurers, legal advisers, analytics providers and risk technology specialists – faces many of the same pressures. A soft insurance market and the need to develop innovative products capable of addressing emerging risks are creating challenges for the broader risk transfer ecosystem.

Against this backdrop, the forum focused heavily on the role captives can play in strengthening organisational resilience. Captives, which are insurance companies established by a parent organisation to insure its own risks, can help companies address gaps in traditional insurance markets while retaining greater control over risk financing.

The event brought together stakeholders from across the captive ecosystem, ranging from organisations exploring captives for the first time to more experienced users.

Maxwell said discussions also centred on the prospect of developing a UK-based captive insurance sector. Currently, many UK companies establish captives in established offshore domiciles such as Jersey or other international jurisdictions. However, she suggested that a domestic market could emerge if the right regulatory environment is created.

“As an ex-regulator, I would say the regulatory regime matters greatly,” she said, stressing that any framework must be proportionate, fit for purpose and supported by an engaged regulator.

Representatives from the Prudential Regulation Authority indicated that a consultation on a potential regime could take place later this year, with the possibility of implementation by 2027. Maxwell encouraged risk professionals and industry participants to engage actively in the process.

She argued that the UK already possesses many of the ingredients needed to support a successful captive market, including demand from businesses, professional expertise and a strong network of ancillary services such as legal and accounting support.

Looking ahead, Maxwell suggested that the development of a dedicated captives association could also help support the sector’s growth. AIRMIC has begun considering what role such a body might play, how it might be funded and when it should be established.

Reflecting on the forum, Maxwell said she was optimistic about the UK’s prospects. With the right regulatory framework and continued collaboration across the industry, she suggested the UK could be “boasting of a mature domestic captives market” within the next five years.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.