Captives can offer attractive uniformity in corporate risk management

The growing use of captives as a risk management tool is one of several forces rapidly reshaping the landscape of insurance and risk management in the UK.

So says Darren King, vice president of claims – EMEA & APAC at Xceedance. He told AIRMIC Today that captives represent a growing source of innovation in the risk-transfer landscape, alongside other trends such as automation and a move from legacy system.

He explained one of the largest drivers towards the use of captives, in both the UK and Europe, is the uniformity they can offer a company – as well as much better control.

“Captives offer consistency and control,” he said. “You’re not beholden to varying local policies or exclusions. You decide what’s covered and retain control over claim outcomes.”

He emphasised the strategic value of captives for multinational firms, especially in managing global programmes. “Even the largest insurers can’t offer identical coverage everywhere. With a captive, you ensure uniformity across borders, control claims and justify premiums based on data you trust.”

 “Captives offer consistency and control. You’re not beholden to varying local policies or exclusions.”

King’s message is driven partly by a shift in his own perspective – having moved from a corporate insurance and risk team to a solution-oriented role at Xceedance. This allows him, he said, to see gaps in risk infrastructure more clearly.

“When you’re in a corporate role, you’re insulated,” said King. “Innovation is restricted to what your broker or fronting insurer tells you. There’s little visibility into how other corporates operate, and limited opportunity for meaningful benchmarking.”

King explained how Xceedance often works with clients in a very holistic way. “It usually starts with consultancy. We assess their systems and suggest where tech, automation or offshoring could improve efficiency or reduce costs.”

One persistent issue across insurers, MGAs and brokers, he noted, is an overreliance on fragmented legacy systems.

“Most firms have gone through mergers and acquisitions, so they’re using multiple systems that don’t talk to each other. The client feels it most – asked the same question four times, delays and errors. We help bridge those gaps.”

One solution Xceedance frequently recommends is a workflow tool that integrates with existing systems. Rather than replacing everything, the overlay allows clients to monitor where claims or policies sit within their lifecycle. According to King, this offers both clarity and control, which translates directly into client satisfaction.

He also described the dramatic changes automation has enabled. “I used to need an entire office of people to handle claims. Now, we have systems that read emails, extract data, auto-populate claims and ask for missing info – without human involvement,” he said. “It’s faster, more accurate and not prone to misinterpretation.”

This, King argues, makes risk management “cleaner and easier to control”. By removing manual inputs, corporate risk teams can focus on analysis rather than administration.

Reflecting on today’s claims technology, King was unequivocal: “If I’d had this tech when I was running a TPA or working within a corporate risk team, it would’ve solved a lot of problems – data consistency, claims delays, cost inefficiencies. The pace of change is staggering, and corporates need to catch up.”

As insurers and corporates gather at AIRMIC, King’s message is clear: legacy limitations can be overcome – provided you know where to look.

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