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Risk managers turn increasingly to captives, alternative cover - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk managers turn increasingly to captives, alternative cover by Claire Wilkinson Alternative Risk Transfer/Captives , General liability , Property May 5, 2026 PHILADELPHIA – Corporate buyers are using captives and parametric insurance to navigate diverging market conditions, as property insurance pricing eases and casualty rates continue to climb, a panel of experts said. Pricing pressure and limited capacity are driving increased use of alternatives, particularly in liability lines, Aiden Joo, managing director and head of alternative risk transfer for North America at Marsh, said Monday at the Risk & Insurance Management Society’s Riskworld conference. “We had 28 consecutive quarters of hard property markets,” he said, adding that casualty pricing is “going upwards and upwards.” Shaun Jackson, executive director of risk management at Panda Restaurant Group, said his organization formed a captive in 2022 when traditional property coverage became increasingly costly. “You think that’s expensive. Look at how much you’re being asked to spend for these traditional policies,” Mr. Jackson said. Captives can be used to retain risk and to backfill deductibles or reduced limits, including for business interruption exposures, while providing companies with greater flexibility in responding to losses, he said. They also play a key role in crisis planning, as tabletop exercises highlight how much risk is retained before insurance responds, he said. “When you tell senior leadership … not until it gets to $20 million, $30 million, every step that they take is costing us money,” Mr. Jackson said, adding that the exercises help quantify decisions and reinforce financial exposure in real time. Parametric insurance is being used alongside traditional coverage to address gaps such as supply chain disruption and nonphysical business interruption, paying based on predefined triggers rather than loss adjustment, Mr. Joo said. “It’s a fast-paying type of solution. Sometimes it could be a matter of two weeks,” he said. “Are you leaving something behind by just purchasing traditional insurance?” he said. Multi-year and structured programs are also expanding, particularly where companies face high rates-on-line or limited capacity, panelists said. “Be creative with your program and go out and seek out some of these solutions, because they’re there,” Mr. Jackson said. “Uncertainty is not going away,” said Dave Arick, managing director of global risk management at Sedgwick. “Our goal … is how do we align people and capital and solutions before things go wrong,” said Mr. Arick, who moderated the panel. 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