Non-profits and charities look to captives to negate rising costs

• Tough commercial market for not-for-profits and public entities
• Captive frequently used to fill growing gaps in coverage and raise capacity
• Emerging risks and liability insurance a particular challenge
• Internal and stakeholder buy-in can be slower than in the private market

Public entities, non-for-profits, and charities have long been common utilisers of captive insurance structures, but they are increasingly looking towards captives as a means of addressing emerging risks, stifling rising costs and mitigating a lack of capacity in the commercial market.

A common challenge faced by a number of these organisations when utilising captives is the capital requirements needed to fund the formations.