Careful planning leads to better solutions.
And better risk management.
The decision to form a captive or cell captive (a ‘captive’) should be preceded by a feasibility study which is an examination of the advantage, disadvantages and costs as they relate to an organization’s specific circumstances. The primary function of a feasibility study is to compare the costs and benefits of operating a captive against the costs and benefits of other alternatives for funding specific exposures.
Artex is a pioneer in the space of feasibility studies. Our combined use of art and science aids in finding outcomes and solutions others may miss or overlook to achieve better, and more sustainable, risk financing solutions. By conducting a feasibility study, you will be able to establish clear goals and a way forward, including:
- Determining the risks a captive intends to insure
- Identifying and analyze the underlying exposures
- Forecasting the losses
- Modelling financial projections from the options which have been identified and evaluated
Captive Health Check
Change is constant and affects the continued success and health of a captive. Artex offers in depth analysis of current captives to uncover gaps, inefficacies and offers guidance for improvement. We find that mature captive insurance companies benefit from fresh ideas and fresh eyes on operations and returns. Our analysis is designed to offer detailed and actionable recommendations. We take into consideration:
- Current goals and strategies of the captive owner
- Current captive participation-is it still beneficial and necessary?
- Expansion of captive participation-pros and cons of expanding the captive to other risk financing areas
- Maximizing utilization of captive cash flow
- Captive domicile – is it still fulfilling the needs of the owner?
- Governance issues – is the captive operating in accordance with the laws and regulations of its home domicile?
Actuarial and Risk Advisory Solutions
The successful implementation, operation and evolution of an alternative risk transfer program requires robust actuarial analysis and risk modelling.
Whether you are considering a captive or a self-insurance fund, seeking advice in relation to an existing vehicle or expanding your current program, we can bring depth and breadth of actuarial expertise at each stage in the life cycle of your initiative: planning, development, operational and windup.
We advise on all types and forms of alternative risk transfer vehicles:
- Single-parent captive
- Special-purpose vehicle
- Risk retention group
- Protected/segregated cell company
- Association captive
- Affiliation insurance program
- Group captive
- Special-purpose reinsurance
- Self-insurance funds
- Risk pooling vehicles
Ready to explore how a feasibility study, captive health check or actuarial review can help your business? Contact us.