It was such a pleasure to be part of the European Captive Forum this year. The event, held last November 8 and 9, was filled with a lot of firsts: it was my first business trip as a member of Delonia Software. My first visit to Luxembourg, a city of enormous charm, rich in design and natural beauty. It was also my first time to visit Luxembourg, a city with so much charm, rich in design and natural beauty. In fact, I had never been to a meeting related to captive insurers and reinsurers.
Like any new experience, it was full of surprises. As a newcomer to the industry, I became fascinated by the world of captive insurance. Looking at it from the outside, I was surprised not only by its existence, but also by the fact that it is such a thriving sector, capable of building a microcosm with so many players and business opportunities. Although the captive insurance concept is more than 100 years old, it has been in the last 30 years that it has experienced a boom. In fact, Daniel Towlethe president of CICA (Captive Insurance Companies Association), stated that we are in the “Golden Age” of captives. Today, the opportunities are not only for captive companies, but also for the companies that support and endorse them. However, these opportunities are tempered by the challenges they bring, including a certain caution towards new technologies.
An interesting session on Employee Benefits. The speakers are Dana Citron (DHL Group), Daniela Masters (Generali), Hantasoa Rasoamahenina (Intercona Re), José María Corsino Escobar (Delonia), and Marco Fattori (Allianz Partners).
These are the conclusions I drew from the event:
1. The industry is in the midst of a Golden Age, which will offer breakthrough opportunities to those who know and can take advantage of the available business. To quote Zig Ziglar: “success occurs when opportunity meets preparation.” These opportunities are not only open to captive companies but also to the companies that support them.
2. Captive companies must be supported so that they can adapt to current requirements. In this regard, the key aspects will be:
● Business intelligence
● Process efficiency
● Rapid response and adaptability
3. One of the keys to taking advantage of this Golden Age is data. Business intelligence is based on data. Moreover, relying on data is more important now, after Covid, when it seems more difficult to make risk predictions with the parameters of the past. The world has entered a new phase, it is important to be prudent and not take for granted that we can predict things with the same criteria that have been used until now.
4. New technologies arouse some concern, which is understandable. Marketing and sales profiles tend to exaggerate when they say that technology is the “only solution,” that it can fix everything. A message that can confuse the market and create false expectations, and is detrimental to captive companies and the technology sector itself.
At the opening gala, the author (with beard) with Álvaro Villamor García -left- (Dirigeant Agréé), Sacry Parra Muñoz (Natural Re) and José María Corsino Escobar (Delonia Software).
5. In response to this, it is important for solution providers to provide a personalized service to captives and not simply offer a “one-size-fits-all” product. Just as captive companies are created to provide a service tailored to the parent company, the solutions offered to them must also be customized and adapted to their needs. During the sessions, it was possible to appreciate the different directions in this regard: while some are focused on scaling up, others opt for ESG(Environmental, social and governance). Some highlight the importance of
Employee Benefits
while others focus on managing health care and health insurance in the medium term. A ready-made solution is not the answer to any of these challenges.
Therefore, it is crucial that solution providers work to build trust by being transparent and sharing not only the advantages but also the limitations of their systems and products. It is also important not to rush and try to change everything. When it comes to introducing technological improvements, an agile and evolutionary approach must be adopted that yields progressive and steady results.
In short, it is a great time for companies and companies in the captive insurance sector. But just as there are opportunities, there are also challenges, and it is important to take the right steps to overcome them. I am looking forward to the next forum in 2025 to see and hear all the success stories that are starting now.
