ESG & Investing
Risks Too Big for Insurers Feed a $200 Billion Market Boom
- Captive insurance is becoming the last resort for many firms
- Aon executive says trend is pronounced in oil and mining
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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.