Disruption may be the latest watchword in the insurance industry, but its impact isn’t just being felt within the personal or commercial lines’ property and casualty space. Worldwide, captive insurers have experienced tremendous growth in numbers over the past four years – but they also are dealing with digitalization’s effects.

Group and cell captives, themselves born within disruptive economic conditions, are successful alternatives to traditional insurance, usually established to avoid rising premiums or fill gaps in coverage not available from their traditional insurer. Whether born out of times of economic chaos, or formed to create it, they have grown to become effective and resilient risk management tools for their participants. Indeed, as a strategic management tool, use of captives has increased from 18 percent in 2013 to 37 percent in 2017, according to Aon’s Global Risk Management Survey results, which recently garnered data from 1,843 organizations.

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