SCOTTSDALE, Arizona — Captive owners should revisit their feasibility studies and work with all stakeholders as they look to expand their captive programs, experts say.

They were speaking Monday during a panel session at the Captive Insurance Companies Association 2024 International Conference.

“The first time you went through this process, whether you were with your organization or not, it’s that same concept and plan as you evaluate the expansion of your captive and your risk-bearing capacity,” said Anne Marie Towle, Indianapolis-based CEO global risk management & captive solutions at Hylant Group Inc.

Captive owners should “take a step back” and consider potential changes from their own perspective, as well as the perspectives of all key stakeholders, Ms. Towle said.

“That makes a big difference,” she said.

Companies should really think about their captive as a business, said Lee Scott, vice president of corporate technology at The Biltmore Co. in Asheville, North Carolina.

“It’s really easy to think about ‘hey, this is a sort of risk-type vehicle that is just there,’” but working to understand what your strategic vision is for the captive is critical, Mr. Scott said.

“For us, that vision continues to evolve,” he said. When Biltmore’s captive insurance program was created in 2014, it wrote about 15 policies and now has 40 lines of coverage in the portfolio, he said.

Having a long-term strategy for the captive is important, Ms. Towle said. “Knowing that you have options is very important in all aspects of expansion,” she said.

It’s also helpful to have discussions early on with regulators about any strategy changes, said Lauren Robertson, chief financial analyst for the captive insurance division, at the South Carolina Department of Insurance in Columbia.

“We like to be involved and know the reasoning behind it,” Ms. Robertson said.

Having an open dialogue is also important, panelists said.

“Risk changes very quickly. The pandemic really taught us that,” Mr. Scott said, adding: “Having that communication with actuary, manager, regulator, legal partners — that’s so important for us.”

Captive owners should leverage the expertise of their service providers because they have a good handle on the financial stability the organization can achieve, said Michael Meehan, principal at Milliman Inc. in Boston.

“We can give some pretty good insight as to what financial risks the captive could take on and still be able to meet the regulatory requirements,” he said.

It’s critical for captives to have “a cheerleader,” a person who can facilitate, gather information and get the necessary approval from all stakeholders, he said.

Particularly for group captives and risk retention groups, being open with key stakeholders and having “a quarterback, somebody to help champion and shepherd that process and share information aligning with your goals and objectives are critically important,” Ms. Towle said.