Artificial Intelligence in Captive Insurance: Practical Lessons from a Healthcare Risk Retention Group

Artificial intelligence (AI) is rapidly changing how captive insurance companies and risk retention groups operate, but where does it create the greatest value, and where should human expertise remain firmly in control? In this episode of The Edge of Risk Podcast by IRMI, Joel Appelbaum is joined by Julie Bordo, president and CEO of PCH Mutual Insurance Company, a Vermont-domiciled healthcare risk retention group serving assisted living and personal care homes across the United States. Julie explains how her organization has used AI to improve claims administration, underwriting workflows, legal operations, and member services while maintaining strong governance and regulatory oversight. The conversation explores how a lean captive organization can use AI to automate repetitive work, summarize complex claims files, enhance operational efficiency, and free staff to focus on strategy and risk management rather than administrative tasks. Julie also discusses why AI should be viewed as a collaborative assistant rather than a replacement for human judgment. She shares practical guidance on AI governance, cyber security, prompt validation, and organizational policies, while offering advice for captive owners and risk retention groups looking to adopt AI responsibly. The discussion also provides valuable background on how risk retention groups operate within the captive insurance industry and why their collaborative structure supports innovation and specialized risk management.