As the market for in-house insurance surpasses a record $200 billion, the underlying reasons for that boom show how a hotter, less stable planet is redrawing the risk map for corporations.
Captive insurance, where companies create their own coverage vehicles, is on the rise, according to insurance broker Aon Plc. Companies are using it to work around restrictions or to avoid prohibitively high prices imposed by external insurers. And it’s a development that’s particularly pronounced in sectors tied to climate change.
Oil and mining firms are now “using their captives to a greater degree,” John