Zurich: captives more vital than ever

The world in 2025 is marked by rising complexity. Heightened geopolitical tensions, climate risk, and societal divisions are reshaping the world, and according to a new report from Zurich, making captives more vital than ever.

Zurich pointed out that the World Economic Forum’s Global Risks Report 2025 paints a stark picture of the decade ahead, warning of a “bleak outlook across all three-time horizons”. It notes that extreme weather events, armed conflicts, misinformation and supply chain disruptions are converging to create an environment of uncertainty – one in which resilience is not optional but essential.

Given this context, captives have never been more vital, according to Adriana Scherzinger, group head of captives, Zurich Insurance Company. “They provide organisations with the ability to take control, stabilise volatility, and respond with agility to shocks that the traditional insurance market is struggling to absorb. Our Captive Spotlight Report explores how captives are being used to do exactly that: financing climate adaptation, incubating emerging risks, and aligning with ESG goals.”

The new report, Spotlight on Captives: Embracing Opportunity, Taking Control, from Commercial Risk and Zurich Insurance Company, highlights the increasingly important role played by captives in helping to control the volatility in the insurance markets and manage emerging and difficult risks.

In a statement on the report Zurich said that: “It is clear that captives have a much broader role to play than simply retaining and financing risk. When it comes to climate risk, for example, captive can help to build resilience and adaptation by collecting data, providing encouragement and financial incentives for risk improvements, and funding prevention and adaptation measures.

“There are various ways in which captives can take on climate exposures or play a part in their mitigation, including retentions and cost savings, tailored coverage, and the financing catastrophic risk, as well as providing access to reinsurers and to alternative risk transfer options such as parametric solutions or weather bonds.

“And as captives participate in the increasing risks related to climate change, they can help invest significantly into risk mitigation and loss prevention measures, such as climate-resilient infrastructure.”

For more information contact Zurich.

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