Luzern Risk has raised $45 mn in Series B funding to expand its captive insurance management platform and alternative risk services. Insight Partners led the round, with participation from Trust Ventures and existing investor Caffeinated Capital.
Caffeinated Capital previously led Luzern Risk’s seed financing in 2023. The investor also led the company’s $12 mn Series A in 2025.
Luzern Risk operates as a full-service captive manager focused on alternative risk structures. Its AI-native technology platform supports the launch and administration of customized captive insurance programs. The company designed the system to shorten implementation and servicing times for captive programs, where administration often involves specialized processes spread across multiple parties.
Commercial insurance costs and pricing volatility have encouraged more organizations to examine alternative methods for financing risk. Captive insurance gives companies greater control over retained exposures and insurance economics.
Captives are regulated insurance entities generally owned by the organizations whose risks they insure. Companies use the structures to design customized coverage and retain underwriting profit. Captives also allow owners to accumulate surplus rather than transferring all premium economics to commercial insurers.
Around $240bn in gross premium now passes through captives, according to Luzern Risk. The company estimates the sector represents roughly 10% of the global P&C insurance market.
Large multinational companies have used captives for decades. Adoption has expanded into the middle market as more organizations examine self-funded and alternative risk structures.
Luzern Risk works with brokers and fronting carriers involved in captive programs. Reinsurers and specialist advisors also participate across the company’s network. Its digital platform supports client relationships and captive administration across several industries.
Customers include mid-market businesses alongside large publicly traded companies. Luzern Risk says revenue has grown rapidly year over year as adoption of its services has increased.
CEO and co-founder Gabriel Weiss said the company started with the goal of making captive insurance accessible to a broader group of businesses.
Experience gained since launch has strengthened management’s view that captives will account for a larger share of corporate risk financing, Weiss said.
The new investment will support development of Luzern Risk’s technology platform and expansion of its AI capabilities.
The company plans to automate more captive administration processes and provide owners with additional risk information through its software.
Funding will also support operational development across the business. Luzern Risk wants to standardize more internal processes and reduce turnaround times for specialized captive work.
Another portion of the capital will go toward expanding services across the alternative risk value chain.
CTO and co-founder Jonathan York said automation reduces the administrative effort required to operate individual captives while improving consistency.
Additional platform functions also give captive owners access to services and information unavailable through traditional administration models, he said.
Luzern Risk develops parts of its technology alongside customers. York said feedback from captive owners influences how the company adds new software functions and operational services.
Captive management remains the foundation of Luzern Risk’s longer-term strategy. The company expects the structure to become relevant for a wider range of organizations as businesses seek insurance arrangements tailored to their own exposure profiles.
Luzern Risk also sees an opportunity to connect outside capital with companies retaining or transferring specific risks through captive structures. Building this market requires infrastructure shared across several insurance participants.
Luzern Risk wants its technology to support captive owners and brokers while also serving carriers and reinsurers involved in risk transfer.
Regulatory reporting represents another part of the model. The company expects standardized data and processes to make captive placements easier for brokers and provide insurers with better information during underwriting.
More structured reporting would also give regulators clearer information when supervising captive insurance entities.
