Shaping the future of captive insurance
Three of our finalists from this year’s FORTY Under 40 shared their insights on what the next generation of captive leaders are thinking in a special Captive Review online panel.
The captive insurance sector stands at a pivotal moment. As organisations navigate increasingly complex risks from cyber threats to evolving regulatory environments – the role of captives is expanding beyond traditional risk financing mechanisms into strategic tools for innovation, data analysis and enterprise risk management. At the same time, the industry faces its own challenges, including technological disruption and a looming talent gap.
Against this backdrop, Captive Review convened a virtual panel discussion featuring three finalists from its 2026 FORTY Under 40 programme: Luke Renz, captives consultant at Captives.Insure; Ryan Williams, senior account executive – US at Aon and Eric Funk, account executive at Risk & Insurance Strategy Collective (RISC). Moderated by Captive Review editor Marc Jones, the conversation explored how emerging leaders view the future of the captive ecosystem and the priorities that will shape its development over the coming decade.
Watch the full panel discussion below.
Jones opened the discussion by highlighting the significance of the FORTY Under 40 programme and the diversity of expertise among its finalists. The captive sector, he noted, is evolving rapidly as organisations confront “new risk landscapes, regulatory developments, technological disruption and growing expectations around governance, sustainability and talent development”. The panel’s objective was therefore to examine the ideas and leadership approaches emerging from the next generation of professionals.
A growing industry facing new realities
All three panellists agreed that the captive sector is poised for significant growth in the coming years, though that will bring new challenges.
Luke Renz emphasised the scale of change already under way. “I think we’re going to see exponential growth over the next decade,” he said, noting that the increasing complexity of risk management will make captive structures more attractive to organisations across industries.
However, he also warned that the sector must address a looming workforce shortage. According to industry estimates cited during the discussion, more than 400,000 insurance professionals are expected to retire in the coming years. At the same time, younger generations show limited interest in careers in insurance. “We have a talent crisis,” Renz said. “Only about four per cent of the next generation currently see insurance as a career path they want to pursue.”
Technology, particularly artificial intelligence (AI), might partly offset that shortfall by automating administrative tasks and improving efficiency. Yet Renz cautioned that technological progress must be accompanied by careful governance and education.
“We have to ensure that information coming from AI aligns with best practices and regulatory requirements,” he said. “People might plug something into ChatGPT and think they have the same knowledge as someone with decades of experience, and that’s not always the case.”
Ryan Williams echoed the expectation of growth but argued that the real transformation lies in how captives are used. Historically, many organisations viewed captives primarily as tools for reducing insurance premiums or managing tax implications. That perspective is beginning to change.
“The industry has traditionally focused on risk financing,” Williams explained. “But now we’re seeing captives transition into broader risk management tools.”
Advances in data analytics and modelling are allowing companies to use captive structures in more sophisticated ways, including addressing emerging risks such as cyber threats or technology related exposures. In Williams’ view, the next phase of captive evolution will involve integrating data-driven insights into strategic decision-making. “It’s not just about saving money any more,” he said. “It’s about using the data generated through captives to make more meaningful predictions about future risks.”
Eric Funk also pointed to a broader shift in the market, particularly the growing accessibility of captive programmes for mid-sized organisations. Traditionally, captives were associated with large multinational corporations, but that is no longer the case.
“For a long time, captives were mainly used by Fortune 500 companies,” Funk said. “But over the past five to ten years we’ve seen a significant expansion into the middle market.”
Structures such as group captives and cell captives have reduced barriers to entry, enabling smaller companies to participate. This expansion is increasing the volume of data and operational experience within the industry, which in turn fuels innovation. “The more companies you add to the ecosystem, the more perspectives you get,” Funk said. “That leads to more innovation and more operational maturity across the industry.”
Technology: opportunity and disruption
Throughout the discussion, one theme repeatedly surfaced: technology. All three panellists identified technological innovation – particularly AI and advanced data analytics – as the most influential force shaping the captive sector’s future.
Williams described technology as the “underlying driver” behind many emerging trends. As companies collect and analyse more data through their captive programmes, they can build more accurate predictive models and risk assessments. “With more companies getting involved in captives, we have access to much more data,” he said. “That data can be used to create foundational modelling and more accurate predictions about risk.”
This analytical capability has implications not only for traditional insurance risks but also for new and emerging exposures. For example, cyber risk has become an increasingly important area of focus for captive programmes.
However, technology also presents challenges. Renz noted that many organisations still lag behind in adopting even relatively straightforward automation tools. In some cases, insurers continue to rely on manual processes for tasks such as entering loss data into spreadsheets. “I’ve had conversations with large carriers that are still manually inputting PDF loss runs into Excel,” he said. “That’s one of the areas where AI can provide immediate efficiency.”
At the same time, he predicted that an overemphasis on automation could lead to a renewed appreciation for human relationships within the industry. “I think people are going to get a little fatigued with everything being AI,” Renz said. “They’re going to want real conversations with real people they trust.”
Funk added that technology should be viewed as a tool that enhances professional expertise rather than replacing it. By automating routine tasks, technology can allow risk managers and captive professionals to focus on higher-level strategic work.
“It can take away some of the administrative burden and allow people to see the bigger picture,” he said.
“People are going to get a little fatigued with everything being AI. They’re going to want real conversations with real people they trust.”
Rethinking innovation in captives
While technology dominated much of the conversation, the panellists also explored broader forms of innovation within the captive industry.
Funk argued that innovation is often framed too narrowly in terms of new structures or policy forms. Instead, he suggested that organisations should focus on improving the operational use of captives within their broader risk management strategies.
“Innovation doesn’t always have to mean creating a new type of captive,” he said. “Sometimes it’s about using the captive you already have in a more strategic way.”
Too often, captive programmes are reviewed only once or twice a year, typically around renewal periods. Funk believes organisations could unlock greater value by integrating captives more deeply into day-to-day risk management discussions. “The most successful programmes are the ones where people are constantly asking, ‘What else can we do with the captive?’” he said.
Williams shared a similar perspective, emphasising the importance of using data in new ways. By analysing historical claims data and operational metrics, companies can gain insights that influence broader business decisions.
“Captives don’t need to be a boring insurance vehicle,” he said. “They can be part of a much more holistic risk management process.”
The talent challenge
Beyond technology and innovation, the conversation turned to one of the industry’s most pressing issues: attracting and retaining talent.
The panel agreed that the insurance sector faces a significant perception problem among younger professionals. Many students and early career candidates simply do not understand what the industry does or what career opportunities it offers.
Renz emphasised the need for greater engagement with universities and younger audiences. “We have to show people what this industry actually looks like,” he said. “Most young people think insurance means sitting in an office making cold calls.”
In reality, he argued, the captive sector offers a dynamic and globally connected career path. Professionals regularly attend international conferences, collaborate with experts across disciplines and develop creative solutions to complex risk challenges.
“This is a really interesting industry,” he said. “We’re solving problems and meeting people from all over the world.”
Williams shared a similar experience. Despite studying in Vermont – one of the world’s leading captive domiciles – he said he had never heard about captives during his university education. “That’s a gap we need to bridge,” he said. “Captives should be part of the conversation in risk management programmes.”
Retention, meanwhile, requires organisations to provide transparency, recognition and clear career pathways. Younger professionals increasingly expect to understand how their work contributes to organisational goals and how their careers can develop over time. “Employees want to know where they stand and what their future looks like,” Williams said.
Funk added that career flexibility is also important. Not every professional aspires to senior leadership roles and organisations should recognise the value of different career trajectories. “Some people want to climb the ladder, and others want to specialise in a particular area,” he said. “Both paths can be valuable.”
“Sometimes the best thing a leader can do is bring the right people into the room.”
Leadership lessons for the next generation
As the discussion drew to a close, each panellist shared advice for professionals considering a career in the captive insurance industry.
Williams emphasised the importance of personal initiative. Careers in captives offer flexibility and diverse opportunities, but success ultimately depends on the effort individuals are willing to invest. “You get out what you put into this career,” he said.
Funk highlighted the importance of collaboration and humility in leadership. Effective leaders, he suggested, recognise when others have greater expertise and create opportunities for them to contribute. “Sometimes the best thing a leader can do is bring the right people into the room,” he said.
Renz concluded with a simple but powerful principle: persistence. “No one becomes an expert in captives overnight,” he said. “It takes time, learning and a willingness to step outside your comfort zone.”
For Renz, that persistence applies not only to technical knowledge but also to professional development. Activities such as participating in industry committees, attending conferences and speaking on panels can accelerate career growth.
“Those experiences help you build relationships and create opportunities,” he said.
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