Captive claims grow more complex
Rob Kleinveld, director global technical services, Europe & Middle East at Crawford & Company, says complexity rather than any single peril is becoming the defining claims trend across the captive sector, reflecting the increasingly international and interconnected nature of corporate risk.
Speaking to FERMA Forum Today before the 2026 FERMA Conference, he said that large multinational losses can span multiple countries, entities and policies, making it harder to establish where a loss sits, how funds should flow and how a captive should respond.
Even familiar perils such as storms, floods and fires can produce complicated claims when corporate structures and jurisdictions are involved. A loss may occur in one territory while the associated revenue or profit is generated elsewhere, creating additional questions around policy response, captive structures, payment allocation and recoveries.
“I think the fact that captive claims are becoming increasingly complex is the current defining claims trend,” Kleinveld says, rather than any particular peril or type of risk companies are retaining.
Reserving adds another layer. Kleinveld says reserves are not simply an accounting exercise, as they can have financial consequences and potentially affect renewals, insurer capacity and the captive itself, particularly following major losses.
Regulatory requirements are also increasing the complexity of claims. Restrictions on transferring funds between jurisdictions are placing greater emphasis on local fronting arrangements and on ensuring that captive structures allow claims payments to be made and allocated appropriately.
The greater scrutiny extends across the claims process, with captives and their service providers facing increasingly detailed questions from auditors about processes and safeguards.
At the same time, Kleinveld argues that the captive itself cannot remain static while the underlying business changes. Corporate risk profiles can shift rapidly because of changes in business strategy, divestments, market conditions, mergers and acquisitions, or expansion into new territories.
Some organisations may even fundamentally change their business model and move into entirely new market sectors. Such developments can alter the risks a company faces and, consequently, the role its captive needs to play.
“The captive should therefore never be viewed as a static structure,” Kleinveld says. Its scope and parameters need to evolve alongside the underlying business.
That makes early involvement in strategic discussions particularly important. Captive managers and risk managers need visibility of developments that could change an organisation’s risk profile and the remit of its captive.
This can help ensure that a company’s retention strategy remains fit for purpose as its business develops, rather than requiring the captive to respond after significant changes have already taken place.
Kleinveld also points to the growing use of historical claims data to identify patterns, understand losses and inform future risk strategy. The increasing availability of analytical technology is opening further possibilities, with companies looking to consolidate claims information and use AI to identify trends and patterns.
That analysis can potentially contribute to broader business decisions, but Kleinveld cautions against viewing historical data in isolation.
“Historical claims data only remains meaningful when considered in the context of the company's current risk profile,” he says.
For captive owners, the implication is that claims information can be valuable not simply for managing individual losses, but for understanding whether the captive continues to reflect the business it serves.
As multinational structures, regulatory requirements and corporate strategies evolve, the challenge is therefore not just handling increasingly complex claims. It is ensuring that the captive’s structure, processes and retention strategy evolve with them.
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