HDI puts service at heart of captive growth

As captive utilisation expands across multinational organisations, owners are increasingly seeking partners that combine global reach with tailored solutions. Dan Sammons, UK and Ireland captives manager at HDI Global, explains how the insurer’s approach is built on scale, integrated capabilities and long-term client service.

KEY POINTS
Global reach enables tailored captive solutions delivery
Agility and integrated fronting drive bespoke programmes
Captives support sustainability and capital efficiency strategies

HDI operates in a market where many insurers offer multinational programme capabilities. Sammons argues that HDI differentiates itself through flexibility, dedicated servicing and integrated alternative risk transfer expertise.

The company can issue policies in more than 200 countries and territories and maintains offices in 35. It manages over 5,400 multinational programmes and has more than 160 captive clients.

A key differentiator is the integration of captive fronting with HDI Enablers, the company’s alternative risk transfer division. This allows clients to access fronting, reinsurance and alternative risk solutions through a single framework.

Central to HDI’s model is a dedicated servicing approach focused on accountability and consistency. Rather than rely on standardised products, the insurer develops bespoke programmes aligned with each client’s objectives.

Sammons says agility enables HDI to design solutions that reflect individual strategies, risk appetites and long-term goals. Programmes can be adapted across design, collateral arrangements, multi-line participation and multinational implementation, evolving as client needs change.

The operating model also supports rapid decision-making. High-level decision-makers on site and a flat management structure allow approvals to be obtained quickly.

HDI’s multinational servicing model is another distinguishing feature. Hub-and-spoke servicing centres across EMEA, the Americas and Asia-Pacific allow policy issuance and programme management to be handled in local time zones and languages. Sammons says this regional presence strengthens relationships and responsiveness compared with managing programmes from a single location.

Despite these operational strengths, Sammons believes service remains the most important measure of success in the fronting market.

“In practice, agility and flexibility means solutions are tailored to each client’s strategy, risk appetite and long-term objectives.”

Integrated reinsurance expertise is also central to HDI’s strategy. Combining fronting, reinsurance and alternative risk transfer solutions helps clients improve capital efficiency, build more sophisticated programmes and access broader market capacity.

Market trends are influencing how captives evolve. Traditional multinational property and casualty captives are increasingly incorporating additional lines of business. Organisations are retaining a wider range of risks to improve solvency calculations and increase capital efficiency.

HDI is also seeing growing demand from organisations facing complex, emerging or difficult-to-place risks. Structured and hybrid solutions that combine captive fronting with alternative risk transfer mechanisms are becoming increasingly attractive.

Maintaining underwriting discipline within customised arrangements is essential. HDI separates underwriting decisions from programme structuring while ensuring close collaboration between specialist teams. Experienced underwriters remain responsible for pricing and risk selection, while captive, alternative risk transfer and operations specialists focus on programme design and delivery.

Capital efficiency has become another major priority. Organisations are increasingly focused on reducing trapped capital and exploring alternatives to traditional collateral structures. Where letters of credit and parental guarantees once dominated, clients are now considering options such as surety bonds, asset-backed trusts and cash trusts to improve balance-sheet efficiency and programme flexibility.

Looking ahead, HDI believes it is well positioned to support greater captive activity if proposed UK captive reforms proceed. Sammons highlights recent investment in dedicated service teams and a strong UK servicing hub.

Captives remain central to HDI’s broader alternative risk transfer strategy. Sammons describes them as a gateway to more advanced and customised risk financing solutions.

These capabilities are increasingly valuable for unconventional and difficult-to-place risks. HDI combines underwriting expertise, global network capabilities and alternative risk transfer resources to help clients structure and retain risks that might not fit traditional insurance markets.

Captives are also expected to play a growing role in sustainability initiatives and energy transition risks. As organisations address exposures linked to renewable energy, ESG objectives and carbon-related liabilities, captives can provide a mechanism for retaining risk, gathering data and supporting long-term strategies.

In areas where commercial insurance capacity remains limited, captives offer flexibility and control while helping generate the data required for broader market participation. Sammons points to a client initiative incorporating carbon credits into claims settlement, illustrating how captives can support evolving sustainability objectives.

For HDI, the future of captive insurance lies in combining global capabilities, integrated risk transfer expertise and responsive service. While technology, infrastructure and scale contribute to success, Sammons believes exceptional service remains the most important factor in helping clients achieve evolving risk management and financing goals.

Dan Sammons is the UK and Ireland captives manager at HDI Global. He can be contacted at: dan.sammons@hdi.global

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