Michael Zuckerman describes today’s world—amid a global COVID-19 pandemic and pressing climate change catastrophes—as VUCA: volatile, uncertain, complex, and ambiguous. How can businesses adopt insurance strategies that are equipped for this VUCA world?

Relying on member-driven governance strategies, Zuckerman points to captive insurance companies as a promising insurance model. As opposed to commercial insurance companies, captive companies are equipped to identify the most pressing threats that organizations face and design optimal risk mitigation strategies.

Several examples have demonstrated the model is adaptive to meet the changing needs of businesses. Zachariah Allen had success when he developed a mutual property insurance company with other mill owners after his insurance company would not credit him with his technological changes to prevent the risk of fires. Furthermore, captive insurance models have helped protect marijuana vendors, as traditional insurance carriers will not insure marijuana industry for fear of legal liability.