Writing EB in a captive has been one of the biggest shifts in our industry. We’re seeing more and more of the world’s largest multinationals taking advantage of the benefits of their captive. And this isn’t something we expect to change as we head into 2025.

David Schupak says: "I see the use of captives for EB continuing to grow. It’s becoming easier than ever to start an EB captive programme and multinationals are looking to provide non-traditional coverage that might not be available in a local market or on local pricing. Diversity, equity and inclusion (DE&I) continues to rise up the corporate agenda and a captive can help multinationals in this space.

"I see a marketplace hungry for captive solutions. Expect to hear more about cell captives in 2025 – plenty of brokers and consultants are already exploring the opportunity."

Nicola Fordham explains: "We always say that a captive is the most effective way to write global employee benefits for multinationals. Yet, the challenge for many large companies is the barrier of setting up their own captive. Cell captives could be the answers for these employers as they allow a company to take advantage of the benefits of a captive solution to finance their enhanced EB programme, without the administrative costs of setting up their own captive.

"Cell captives have been available for some time, but we’re really just now beginning to see this approach gain traction for writing EB. This is because more multinationals are realising the potential cell captives offer – essentially providing a lower barrier to entry than creating their own captive – while still enabling them to achieve similar benefits when it comes to EB programme design.

"As David says, the brokers and consultants are exploring this more, but networks will still play an essential part in delivering EB solutions to cell captives and we’re excited to play this role."

Sven Roelandt has shared his insights into the trends he predicts will influence multinationals’ EB financing decisions in coming years – and the tools that will be vital in supporting that transformation.

Sven says: "As 2025 unfolds, the EB financing landscape is set to offer more clarity, opportunities and innovation than ever before. The clearer segmentation between pooling and captives is enabling organisations to select the most appropriate strategy for their scale and objectives. Meanwhile, the growing appeal of reinsurance to captive and the advent of simplified, technology-driven captive solutions are democratising access to these sophisticated tools.

"For employers, this evolution presents a pivotal opportunity to rethink how they finance their employee benefits, balancing cost control, risk management, and employee satisfaction. Consulting partners, insurers, and networks will play an essential role in guiding organisations through this complex but rewarding landscape, ensuring they maximise the advantages of both pooling and captive strategies.

"While captives traditionally required significant investment and expertise, we at Aon believe 2025 will usher in a new era of accessibility, thanks to technological and operational innovations:

· "Digital platforms streamlining administration: advanced software tools now enable tracking of claims, premiums, and reserves, reducing the administrative burden of captive management.

· "Scalable captive solutions: insurers and consultants are developing ‘captive-as-a-service’ models, offering modular and scalable solutions for organisations new to captives.

· "Focus on local delivery: brokers, transforming into consultants, are playing a pivotal role in simplifying access to captives by demystifying their complexities. They are increasingly acting as strategic advisors, helping organisations evaluate the feasibility of captives and transition seamlessly from traditional insurance models."

Sven concludes: "The future of EB financing is not just about cost – it’s about strategic alignment, innovation and delivering value to both employers and employees. Organisations that embrace these trends today will be well-positioned to thrive in the workforce of tomorrow.”

One of the most fascinating things about the EB industry is how people-focused it is. The insurance and benefits we talk about are relatable to us, as we are employees ourselves. The experts we spoke to agree that the people-focus of the industry will continue and 2025 will be the year of the ‘people agenda.’ This not only reflects multinationals’ interest in employee wellbeing, but a growing awareness of emerging people risks that can be addressed via EB programmes.

Paul Devitt explains: "The definitions of central ‘governance’ and what constitutes a benefit type which falls under the global remit are changing. Our long-term and newly acquired clients are increasingly looking to refine their models to ensure their global management of benefits is adding additional value over the historical drivers of compliance and efficiency, which oftentimes focused on the largest or more tangible benefits.

"We are moving to a rhetoric of an organisation’s 'people agenda', and we need to react to ensure that we are quantifying and advocating for the holistic contribution of benefits to the agenda."

Bastiaan Schepman predicts multinationals’ interest in prioritising their people will continue to grow. He says: "Employee wellbeing has risen to board-level prominence and attracted great media interest in recent years and we only expect this to continue into 2025. This is not surprising: wellbeing matters most to people and drives commercial success. 

"There is increasing evidence for the strong positive relationship between employee wellbeing, good wellbeing leadership and company performance. We see the role of insurers as key to this trend, working closely with multinationals to deliver tools and analysis to help improve employee wellbeing metrics and we already partner successfully with our multinational clients on this strategy. 

"Improving employee wellbeing metrics requires a systemic approach aiming to optimise the work environment, because if employees feel good at work and get the right support from their manager, it increases the success of any organisation."

Sanja Travan agrees. She says: "It is not a surprise that health and wellbeing continue to be the hot topic, with cost pressures associated with it. In the 2025 edition of our Health Trends report, we identify the key trends driving medical developments. The medical conditions that drive costs have remained largely consistent over the last decade – COVID-19 aside. However, the impact of these health conditions is increasing."

Sanja recommends multinationals take direct action on their approach to wellbeing. She says: "Employers should evaluate their programmes to optimise their investment in employee health, balancing not just cost, but also the employee experience. Besides physical wellbeing, there is also emotional wellbeing. Mental health has jumped and become the second risk that we observe in terms of severity. This is why psychological safety has become a powerful enabler, a catalyst, for healthcare transformation. Additional trends that emerge are personalised benefits, financial wellbeing and career wellbeing."

Today, digital innovations in the EB space are focused on two mutually beneficial goals: to serve employees’ health and wellness needs and to help multinationals invest in caring for their people long-term, on the heels of a challenging period of general and medical inflation.

New AI-powered digital services entering the market in 2024 have, and will continue to, transform the EB landscape at pace.

Aaron Brown explains: "In 2025, the global EB landscape will be shaped by an increased focus on flexibility, inclusivity and technology-driven solutions. Employers will prioritise personalised benefits packages that cater to the changing needs of employees, reflecting the increasing number of generations in the workforce and the demand for greater work-life balance."

Aaron adds: "Digital transformation will drive the integration of AI by insurers and data analytics to enhance benefit personalisation, claims analysis, accessibility, and cost efficiency for the multinational. Additionally, the growing importance of mental and financial health, sustainability, and global equity will influence the design and delivery of benefits, as organisations strive to attract and retain top talent in a competitive, evolving workforce."