Article

Captive insurance structures are increasingly being leveraged to address frustrations with traditional carrier claims handling. In the open market, claims often disappear into opaque processes where adjusters and defense counsel lack familiarity with the insured’s business, leading to inefficiencies, repeated explanations, and outcomes misaligned with corporate priorities. Captives, by contrast, allow organizations to appoint independent defense panel counsel who understand the company’s contracts, relationships, and strategic objectives. This independence creates a tighter feedback loop between claims strategy, litigation outcomes, and the parent’s balance sheet, making claims governance a central benefit of captive ownership.

The article underscores that this shift is not just about efficiency—it’s about strategic influence. By using independent defense counsel, captives enable businesses to shape litigation decisions, manage reputational risk, and ensure defense strategies reflect broader organizational goals. Regulators and reinsurers still require premiums and claims practices to be actuarially sound and arm’s‑length, but within that framework, captives provide flexibility and control that traditional carriers cannot match. As Luke Renz of Captives.Insure explains, claims governance is emerging as a defining value driver for captives, elevating them from risk‑financing vehicles to strategic tools for aligning insurance with enterprise priorities.

Luke Renz, ACI offers a timely perspective on why claims governance is becoming a core captive value driver.

Read the full Captive International article here: