Metals and mining companies assess captive utilisation as climate risk grows

• Greater risk financing maturity needed to combat climate risk and green transition exposures
• Property, machinery risk frequently written in captives
• Mining and metals captives have unique challenges when faced with significant claims

A growing number of companies in the mining, metals, oil and gas sectors are looking towards captive utilisation, particularly in the metals and mining middle market segment, with traditional carriers reducing capacity and increasing exclusions concerning climate risk.

These companies are also assessing captives to avoid increasing rates in the commercial market, especially for property risk.