From: Captive Review
International SOS chief risk officer Franck Baron reveals how the group’s EB captive programme has generated value for the parent, and the challenges that had to be overcome to make it a success
Using a captive to write employee benefits risk can deliver long-term financial and strategic value, but success depends on strong internal governance, alignment across functions and patience from leadership.
That’s according to Franck Baron, chief risk officer at International SOS and president of IFRIMA, speaking to Captive Review ahead of his panel today at the annual CICA conference, titled ‘Strategic use of captives in employee benefit design.’
Drawing on his own experience overseeing an employee benefits captive programme, Baron said the structure has evolved beyond a simple financing mechanism into a strategic platform supporting financial stability, health risk management and wider corporate objectives.
“We have used our captive as a long-term strategic platform for our employee benefits programme, with a clear focus on sustainable financial performance rather than short-term optimisation,” Baron said.
“Over time, the captive has enabled us to retain underwriting results, smooth volatility, and improve predictability across cycles, creating measurable value for the parent company.”
