Captive Fit: Optimization for captive insurance companies

Could you be getting more value from your captive insurance company?

Captive Fit risk analytics and modeling gives you answers.

Many mature captives are at risk of 'mission-drift', no longer performing effectively or aligned with corporate risk management objectives.

Is your captive insurance company retaining adequate levels of risk? Could you be generating better value by adding more coverages to your captive? What’s the capital cost of taking more risk?

With Captive Fit, you can identify both vulnerabilities, as well as the steps you can take to improve financial performance.

We connect clear and actionable reporting data with our powerful Igloo platform to help your captive insurance company:

• Prevent overcapitalization and identify scenarios that could trap cash in your captive
• Quantify potential dividends your captive can pay back to the business
• Protect your captive from over-accumulation or under-use of surplus
• Identify extra value potential from extending or diversifying your captive to retaining more risk
• Uncover investment issues your strategy may be causing.

Get long-term resilience with actionable captive risk analytics

Captive Fit lets you model and build scenarios to inform better risk financing decisions. It means you can quantify impacts on capital through simulated balance sheets and income statements and visualize the impacts of ‘what-if’ scenarios in real time.

You can also evaluate your risk and insurance strategy to deliver the protection the business needs to meet desired confidence levels.

With Captive Fit, you can:

1. Stress assets and liabilities to determine surplus capital at different confidence levels
2. Quantify capital adequacy at higher confidence levels
3. Reflect dependencies and correlations across coverages and risk types
4. Understand the effects of diversification on mitigating additional capital requirements should you add new coverages to your captive.

Value-generating captive analytics powered by Igloo

Igloo’s powerful environment for modeling and visualizing risks lets you see how your decisions could impact the risk and performance of your captive insurance company.

After nearly 20 years of constant development, Igloo has more than 1,000 users across 150 different companies.

Captive optimization analytics built around your captive

The following provides a high-level summary of how Captive Fit could work to optimize your captive.

Step 01

You tell us which areas you’d like to stress-test or where you’d like to investigate the potential for greater value. Together, we confirm your risk appetite.

Step 02

You supply data, such as ground-up loss information, existing actuarial reports, financial statements, asset values by class, budgeted premiums and expense assumptions, plus information on your risk appetite.

Step 03

We evaluate your risk strategy to determine if your insurance program provides the desired protection at desired confidence intervals. The impact on capital is assessed through simulated balance sheets and income statements. You can view the results of your ‘what-if’ scenarios in real time to explore questions including:

• What is the cost of increasing my retention?
• How much risk am I retaining?
• What happens when I add coverages to my captive?
• How can we make structural changes to the program without trapping cash in the captive?
• What additional frictional costs come with placing risks in my captive and how can we minimize or avoid them?

Step 04

We share the analytics and modeling outputs and help you interpret and articulate them to your stakeholders.

Step 05

We support you in devising and, where appropriate, implementing your next steps to optimizing your captive.

Ready to see how to get better value from your captive insurance company and ensure it’s fit-for-purpose? Get in touch for your Captive Fit demonstration with one of our captives specialists.