Having multiple networks is advantageous for captives, according to panellists at the 2018 Bermuda Captive Conference (BCC).
Speaking on a panel discussing employee benefits at BCC, Jessica Bynum, senior director of global benefits for Nike, said having more than one network can be beneficial to a captive in multiple ways.
Bynum explained: “For us it has two advantages. One is being able to cover our footprint, there wasn’t any one network that could fully cover our footprint, so when we combined two we were able to get to the majority of our policies and programmes.”
She continued: “There is also that healthy competition between the two networks in that country where there is an overlap.”
“If one network isn’t performing or is having issues, we always have the option of bringing in the other fronting network so that helps us maintain the service levels we need for our employees.”
The panel’s moderator, Brian Quinn, Managing Director, Granite Management, added: “There are strengths and weaknesses for every network, there are countries where they are strong and weak.”
“Generally you select where the network is strong in one country and you usually keep two networks depending on your size.”
“When you’re in a captive you’re in a partnership and that partnership works very well together having those two networks speak and work together.”
“My advocate is not to have them competing against each other it is to have them working together.”
Another panellist, Ricardo Almeida, regional director for the Americas, Maxis GBN, said from the networks’ perspective the competition may help the grow employee benefits in the captive industry.
Almeida stated: “We are at the beginning of this journey, in terms of employee benefits and captives and I think competition is a great thing.”
“I think the competition is really going to help us driving and making this business much larger and I think it is good for all of us.”
