These are exciting times for captives. Captives are now a mainstream part of an agile, intelligent and resilient risk financing strategy regardless of insurance market conditions. The use of captives for the incubation of emerging risks, blended catastrophe covers and sustainability projects is directly aligning the use of captives to the strategies of organisations in an increasingly connected, complex and fast-moving world.

In November 2024, the government launched a consultation on introducing a new framework for captive insurance companies. Responses from representatives of the insurance sector and trade bodies responded positively, expressing support for the high-level proposals outlined in the consultation, noting the importance of simplifying regulations and reducing capital requirements. Moreover, the majority of respondents wanted to go further than the scope proposed – to allow more types of firms to be permitted to set up a captive, and to allow more types of risk to be insured by them.

President Donald Trump sowed fresh chaos in metals markets by indicating the US would implement a higher-than-expected 50% tariff on copper.

Geopolitical dynamics, such as potential increase in tariffs and export restrictions, are creating potentially heightened political risks in the mineral sector. These factors can affect supply chains, prices, product availability, and return on investment for mining projects.