A micrometer-scale elastic shell immersed in a nematic liquid crystal may be deformed by the host if the cost of deformation is comparable to the cost of elastic deformation of the nematic. Moreover, such inclusions interact and form chains due to quadrupolar distortions induced in the host. A continuum theory model using finite elements is developed for this system, using mesh regularization and dynamic refinement to ensure quality of the numerical representation even for large deformations. From this model, we determine the influence of the shell elasticity, nematic elasticity, and anchoring condition on the shape of the shell and hence extract parameter values from an experimental realization. Extending the model to multibody interactions, we predict the alignment angle of the chain with respect to the host nematic as a function of aspect ratio, which is found to be in excellent agreement with experiments.