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Risk Intelligence

Captive Insurance Consulting

Tailored Advisory Services

Captive insurance consulting involves providing advisory services to organizations interested in establishing or optimizing captive insurance arrangements. Captive insurance refers to a form of self-insurance where a subsidiary company (the captive) is created to provide insurance coverage for the parent company or affiliated entities.

Here's an overview of what captive insurance consulting typically entails

Initial Assessment

Risk Evaluation: Assess the risks faced by the organization to determine if a captive insurance arrangement is suitable. This involves analyzing the types of risks, severity, frequency, and insurability.
Feasibility Study: Conduct a feasibility study to evaluate the potential benefits, costs, and risks associated with establishing a captive insurance company. Consider factors such as tax implications, regulatory requirements, and operational considerations.

Captive Formation

Structure Design: Advise on the optimal structure for the captive insurance company based on the organization's specific needs and objectives. This includes choosing the jurisdiction, legal structure, and capitalization requirements.
Licensing and Regulation: Assist with the licensing and regulatory compliance process for establishing the captive insurance company. This may involve liaising with regulatory authorities, preparing documentation, and navigating legal requirements.

Risk Management

Risk Identification: Help identify and quantify risks that the captive insurance company will underwrite. This includes analyzing the organization's risk profile, loss history, and risk tolerance.
Underwriting Policies: Develop underwriting policies and guidelines for the captive insurance company to ensure prudent risk selection and pricing. This involves establishing underwriting criteria, risk assessment methodologies, and premium-setting practices.

Operational Support

Policy and Procedures: Develop policies, procedures, and governance structures for the captive insurance company to ensure compliance with regulatory requirements and sound risk management practices.
Claims Management: Implement claims management processes and protocols to handle claims efficiently and fairly. This includes establishing claims reporting procedures, investigation protocols, and claims settlement practices.

Risk Financing Optimization

Reinsurance Strategies: Advice on reinsurance strategies to optimize risk transfer and mitigate the captive's exposure to catastrophic losses. This may involve structuring reinsurance programs, negotiating reinsurance contracts, and assessing reinsurance market options.
Capital Management: Assist with capital management strategies to ensure the captive insurance company maintains adequate reserves and capitalization levels to meet its obligations.

Ongoing Support and Monitoring

Regulatory Compliance: Provide ongoing support to ensure the captive insurance company remains compliant with regulatory requirements and reporting obligations.
Performance Monitoring: Monitor the performance of the captive insurance company and provide regular performance reports to stakeholders. This includes analyzing financial results, claims experience, and key performance indicators.
Captive insurance consulting aims to help organizations leverage captive insurance solutions to manage risks effectively, optimize insurance costs, and enhance risk financing strategies. Consultants in this field typically possess expertise in insurance, risk management, finance, and regulatory compliance to provide comprehensive guidance and support throughout the captive insurance lifecycle.

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