Captives can enhance the financial and operational performance of your organization as a key element of your risk management strategy. Bringing together our risk expertise and data-driven insights, we provide a clear decision making framework to support your risk retention and risk transfer strategies.
What is captive insurance?
A captive is a licensed (re)insurance company owned by a non-(re)insurance group to facilitate its risk retention and risk transfer activities. Businesses that form captives are able to pay premiums to a dedicated vehicle, creating financial segregation for the risks covered with the added advantage of being able to build reserves against future possible losses. This can be particularly helpful in shielding underlying business units from undue cashflow volatility.
Why WTW for your captive?
With expertise in designing, implementing and managing captives for clients worldwide, we use local knowledge and consulting expertise to help optimize your captive by ensuring it is licensed in the right domicile and meets your unique risk financing needs.
We help clients worldwide across a spectrum of industries find opportunity in risk financing decisions. Informed by WTW Risk and Analytics, our proprietary core analytical models and software help clients secure better value from their insurance program and optimize their overall risk portfolio.
Our tools help you perform the financial analysis and due diligence needed to demonstrate the value of forming a captive to all internal stakeholders.
WTW's dedicated captive professionals are here to help you wherever you are on your captive journey.
We can help you in the following areas:
Ongoing capital optimization and risk analytics
Our global risk and analytics experts are dedicated to minimizing volatility and improving profitability.
We identify patterns and discover hidden value in your risk portfolios. We do this by calling on a wide range of analytics-driven capabilities:
- Risk quantification and optimization: Predictive modelling of risks on single line or portfolio basis, risk tolerance and appetite development, and program optimization
- Climate risk quantification: Innovative scenario modeling, identifying new potential revenue streams
- Forensic accounting: Preparation, quantification and resolution of large and complex claims, pre-loss planning and the calculation of business interruption values.
Strategic review
We continually review your captive utilization to optimize value. This support can include captive health checks and captive structure analysis and factoring in long-term resilience by incorporating environmental, social and governance drivers into your captives solution.
Insurance management solutions
We can provide all of the above feasibility, capital optimization and risk analytics services to commercial insurers operating in the domiciles we work in and requiring managed services. This includes:
- Affinity Insurers
- Managing general agents (MGAs)
- Managing general underwriters (MGUs)
- Legacy/runoff insurers
- Niche underwriters.
