HDI Global sees captives as a “significant and expanding” opportunity for the carrier, both in the Iberian market and across Europe, according to Nuno Antunes, managing director at HDI Global Portugal.
HDI opened an operation in Lisbon in October, which the company said would complement its existing customer and broker platform in Iberia.
“We have made substantial investments to enhance our capabilities in the captive sector, and we are now witnessing the fruitful results of our dedication and hard work,” he told Captive Intelligence.
Antunes said that companies and risk managers may currently feel that the traditional insurance market is falling short when it comes to their risk financing needs.
“The truth is that alternative risk transfer (ART) and captives always allow for more tailor-made solutions and work outside of the classical insurance world,” he added.
HDI Global has been operating in the Portuguese market for more than two decades under a Freedom of Services (FoS) licence, but until now the Portuguese business has been handled by the Madrid office.
“As the business grew, we have seen an ever-increasing demand for our products and service, so the new branch in Lisbon, is a natural evolution of the existing portfolio, and will complement the existing customers and broker platform in Iberia, allowing HDI Global to be much closer to its Portuguese customers and partners,” Antunes told Captive Intelligence.
Antunes said HDI strongly believes in the importance of having a local presence.
“However, our decision to open an operation in Lisbon was primarily driven by the need to be in close proximity to the risk managers, rather than specifically being influenced by discussions surrounding Spanish captive legislation,” he said.
Similar to other countries around Europe, there has been growing discussions around the possibility of Spain introducing its own captive legislation.
“Speaking in a broader sense, we view the increased focus on captives by regulators and the growing public discussions as positive developments,” Antunes said.
Antunes said the introduction of Spanish captive legislation could particularly benefit those who are currently hesitant to utilise certain domiciles.
“By providing an additional option, it would enhance the flexibility and attractiveness of the captive insurance industry,” he said.
“For HDI, captive business is a strategic priority and therefore we are keeping a very close eye on all legislative developments on this matter.”