ESG

Mining companies, particularly those mining thermal coal, are looking at alternative risk financing tools, such as captives, for liability cover as a means of countering stricter and dwindling capacity in the commercial market.

Corporate Social Responsibility (CSR) or now better known under the label “ESG“ is a topic that has long preoccupied the insurance industry. However, it has historically been more than...

Companies seeking property coverage will continue to be the driving force behind captive formations in the United States in 2024, as companies look to negate rising costs and reduced capacity in the commercial market.

Captives have an opportunity to drive innovation in ESG and insurance, according to Maria Arana, ESG leader Europe at Marsh, and Lorraine Stack, international sales and consulting leader at Marsh Captive Solutions.

Richard is joined by Marsh's Lorraine Stack and Maria Arana to discuss how the commercial market is factoring ESG metrics into underwriting decisions, the ways we are already seeing captives contribute to ESG efforts and the direction of travel for both the commercial market and captives.

Unprecedented disruption, a hardening (re)insurance market, and the onset of new major risks have increased interest in captive use by corporate risk managers. The captive market – once seen as an alternative to traditional commercial insurance – is establishing itself as a valuable risk management tool and a market in its own right. 

Becoming a signatory of the United Nations’ Principles for Sustainable Insurance (PSI) should only be the start of the captive journey in contributing to the group’s ESG objectives, according to Franck Baron, group deputy director of risk management and insurance at International SOS.

Richard is joined by Paul Phillips, Partner and Global Captive Network Co-Leader at EY, and Lisa Wall, Executive Vice President and Risk Finance Practice Leader at Lockton, to debate whether the power of captives remains undervalued and if they should no longer be considered the ‘alternative market’ as they become more mainstream.