Using Captives in Global Insurance Programs


Captive Use Trends & Innovations | Steven Bauman | Head of Global Programs and Captive Practice North America | AXA XL


According to Steven Bauman, head of AXA XL's global programs and captive practice in North America, there is a long history of organizations using captive insurance companies to enhance their global risk management strategies.

A key component of global captive programs is compliance, which is a necessity for any multinational corporation due to the worldwide regulatory infrastructure that governs insurance.

Because captive insurance companies operate with a very narrow license, they have a very limited jurisdiction. While the captive may issue a master insurance policy, local policies are often needed around the world. From a risk management and regulatory perspective, it is important for the overall corporation that the local policies are coordinated correctly.

Working with a global partner to coordinate the various components of a global captive program, organizations can extend the reach of their captive insurance company to many more areas than they would be able to normally.