A strategic tool for effective risk management: how captives are evolving with the AIG FAC Desk

As companies face increasingly complex risk landscapes, the role of captive insurance structures is expanding in both scope and sophistication. Across Latin America and beyond, organizations are exploring captives not simply as financial tools, but as strategic assets for risk retention, stability, and long-term value. The AIG FAC Desk stands at the forefront of this movement, enabling clients to build well-structured captive programs supported by multinational reach and our facultative reinsurance capacity and experience

From viability to intelligent retention: how captives are built to perform

Establishing an effective captive begins long before the first policy is written. It starts with a comprehensive feasibility study — the foundation for evaluating whether a captive aligns with the business's profile and goals. Once viability is confirmed, the company defines its risk appetite, determining which exposures to retain and which to reinsure. This step is critical in structuring a captive that is agile and financially sound. 

Rather than relying solely on third-party markets, many firms combine internal retention with selective facultative reinsurance, allowing for precise control over exposures while still leveraging external capacity when needed. It is a model that delivers flexibility and operational resilience.

Navigating regulatory terrain: complexity across jurisdictions

Regulatory compliance is one of the most demanding aspects of captive operations — and one of the most variable. Captive owners must understand the regulatory framework of the domicile, particularly tax treatment and solvency requirements. Just as critical is managing regulatory expectations in countries where local policies are issued.

Governance is a recurring theme. Regulators look at board composition, reporting structures, and the captive’s ongoing administration. Each territory has its own approach, and maintaining transparency through financial statements and disclosures is essential. Obtaining senior leadership buy-in is also fundamental, especially when navigating local legal frameworks and aligning captive structures with enterprise risk strategy. 

Capturing value: the financial upside of internal reinsurance

Operating a captive can yield financial advantages. Beyond premium savings, companies gain negotiation power and insulation from market cycles. Captives enable clients to assume more of their own risk in a controlled way, backed by actuarial data and performance modeling.

Over time, profitable captives may accumulate surplus capital. This capital can support additional lines of risk, expand into new territories, or even be returned to the parent company as dividends. This cycle of value creation elevates the captive from a cost center to a source of strategic growth.

Fronting made simple: connecting capacity to compliance

In captive fronting, execution and compliance go hand in hand. AIG’s Multinational platform ensures that local policies are issued timely, even in countries where the client does not maintain an insurance presence. 

This ability to align multinational execution with captive retention is a defining strength of AIG FAC Desk, helping clients navigate fronting requirements without operational friction.

Strength in scale: what distinguishes AIG in the captive space

With unmatched technical capability, financial strength, and the flexibility to move capital globally, The AIG FAC Desk is uniquely positioned to help clients manage complex risk. Its ability to underwrite and support multi-country placements ensures that captive strategies can scale without compromising compliance or control. 

Looking ahead: building strategic resilience together

Captives are no longer niche solutions. They are critical levers for companies seeking stability, autonomy, and financial efficiency in uncertain environments. The AIG FAC Desk continues to expand what is possible in this space, transforming captives into engines of resilience.

From feasibility to execution, compliance to optimization, our teams work alongside clients to shape strategies that are sustainable, adaptable, and future-ready.

Let us continue redefining the future of risk management together.