Long reads

As companies grapple with geopolitical uncertainty, they are increasingly looking to captives to help manage and finance the risks arising from a more volatile environment. 

HSH Captive Limited was licensed on 15 June with WTW supporting the firm with structuring and continued captive management.

The framework is designed to support captive insurance, insurance-linked securities (ILS) and sovereign risk pools.

Industry stakeholders have broadly welcomed the UK's proposed captive regime, describing it as an important step towards a competitive international domicile while identifying re-domiciliation, tax clarity and additional captive structures as the next priorities.

Embedded insurance could become the next stage in the growth of Hyatt Hotels' captive as the company looks to expand beyond traditional risk financing and deliver new sources of value for the parent group.

While captive takaful remains a niche segment of the captive market, industry participants say interest is increasing as more organisations seek risk financing that align with Islamic finance principles.

The strategy forms part of a long-term effort to increase retention within the captive while maintaining relationships with commercial market partners and ensuring coverage remains sustainable across the organisation's network. 

Recent lawsuits concerning voluntary employee benefits plans in the United States should prompt employers to rethink how benefits are structured and captives can play a central role by providing better cost management, alignment and transparency.