The Virtual Captive Concept - Innovative Underwriting Solution in International Employee Benefits Qorus-NTT DATA Innovation in Insurance Awards 2026

In short: Co-created with Mercer Marsh Benefits, this innovative underwriting solution offers multinational corporations an insurance vehicle, allowing to act similar to a traditional captive set-up, without the complexities of managing their own captive. It provides cost optimization, global coverage standards, and flexibility on claims - all under Allianz Partners' governance. Ideal for companies with centralized HR strategies aiming to stabilize global employee benefits expenditures, without taking the step towards a traditional captive just yet. Perfect for captive owners not positioned to write EB business. #Innovation #InsuranceAwards #EmployeeBenefits

The Virtual Captive Concept is an innovative underwriting solution developed by Allianz Partners in collaboration with Mercer Marsh Benefits. It aims to provide multinational corporations with an insurance vehicle, allowing to act similar to a traditional captive set-up, through a multi-year rolling insurance agreement on Allianz Partners' balance sheet. This allows companies to effectively self-manage global employee benefit risks with a virtual balance sheet and profit & loss view, while being covered and governed under Allianz Partners' balance sheet.

The solution addresses the need for multinational companies to stabilize global employee benefits expenditures and offers an alternative risk management approach to conventional insurance markets. It is particularly beneficial for corporations with centralized HR strategies without the complexity of a traditional captive set-up and captive owners unable to write employee benefits business.

This concept is designed to exceed current market standards, offering a unique service that enhances our employee benefits offering for multinational corporations. It provides a competitive edge by delivering a tailored risk management solution that is new in the market.

The development was inspired by the need for more effective self-management of global employee benefit risks and the desire to provide a solution that aligns with the strategic objectives of multinational corporations aiming to remove the traditional captive burden associated with regulatory, cost, and capital requirements while maintaining the benefits of running a captive.

The project is a collaborative effort between Allianz Partners and Mercer Marsh Benefits, leveraging expertise from both organizations to create a comprehensive solution.

We have successfully onboarded the first client, and the implementation process is currently underway, marking a significant milestone in enhancing our employee benefits offering for multinational corporations.

Supporting information: An employee benefits captive solution is a risk management program for multinational companies seeking to carry their own employee benefits risk. It consolidates the risks from employee benefit plans in multiple countries and transfers them to the company’s own captive, allowing more effective self-management of global employee benefit risks. A captive insurance company is, in its purest form, a wholly owned legal entity formed to insure or reinsure the risks of its parent and / or associated group companies. Captives are usually formed to provide alternative risk management solutions to that of the conventional insurance market.