Captive insurance programs are continuing to grow in popularity. While attending the CICA conference earlier this year, I learned that while there were only a handful of Captive programs in 1980, these programs are on an upward trajectory with forecast of potentially 40% of the US market in 2040. According to Marsh’s 2025 Benchmark Report, they have seen their Captive business trending up each year. From 2023 to 2024 there was an uptick in captive policies for Property +10%, Work Comp +11%, Auto +80% and excess liability +24%.
This can bring potential large savings for companies that participate in Captive insurance programs which is always a plus when premiums continue to skyrocket. While they are saving in premiums, how are the claims risks being mitigated?
Who Manages Your Claims—and Your Investigations?
What I have seen through research and discussions with Brokers, Captive Managers and Captive Members, much of the day-to-day claim’s management including Investigative services are being handled directly by their Third Pary Administrator. This can be great for convenience, but I would challenge you to ask:
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Do I know what Investigative Provider is working on my claims?
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Do I receive a quarterly Stewardship Report outlining cost & impact?
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Are they tracking the case and program spend as well as impact on investigative services?
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How is my SIU program handled?
Why Captive Insurance Programs Need Robust Investigations
Investigative services are a strategic asset. Some of the key challenges for many programs are claim costs, fraud as well as regulatory compliance. These concerns appear on all lines of insurance and can be especially high for Workers Compensation, General Liability, Auto and Property & Casualty. Having a strong risk mitigation team, which includes Investigations, will help Captive programs enhance claims management, fraud prevention, and cost control.
Frasco®: Six Decades of Claims Support
Frasco has been a pillar in the claim’s community for over 60 years. Their national company works hard on not only completing services but collaborating directly with clients to audit their investigative processes, identify gaps, educate on services, and provide detailed stewardship reports that answer all the questions above.
What Are Investigative Services?
It is more than surveillance, although this remains one of the most popular and impactful. Below is a list that can help you identify your program needs:
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Surveillance
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Background checks
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Social media investigations
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Medical canvassing
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Activity checks
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Vehicle Locator
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Remote Surveillance
Value of an Unbiased Third-Party Partner
A key role of licensed investigators is their knowledge, skills and ethical considerations when conducting fact gathering. Utilizing a third-party investigations company (service provider outside of your TPA, Insurer or Brokerage firm) brings an unbiased view of the facts, allowing clarity in the report for your Adjusters to make decisions on compensability and benefits. Investigators can also be called as an Expert Witnesses during hearing or trial when needed for defens
Looking Ahead
Understanding who your Investigative partner is, how they conduct services and their ability as well as willingness to work with Captives, Captive Managers and Captive Members may be a critical part of your risk mitigation program. Stay tuned for Part 2 of Unlocking Value: How Investigative Services Empower Captive Insurance Programs.
Contact Us Today
Frasco® Investigative Services delivers ethical and efficient solutions tailored to your needs. Have questions or want to discuss your investigative needs further? Schedule a call with us today to find the answers you’re looking for.
Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Please consult your general counsel for specific legal guidance. Frasco investigators are licensed, and our operations comply with US industry, federal, state, and local laws.