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Captive utilization in the public sector

March 6, 2024

Enhancing budget and operational performance of your organization.
Captive and insurance management solutions

Like many organizational sectors, the public sector has begun facing a crossroads in choices of insurance means and methods. The primary push on the public sector is having tightened budgets with the inability to keep up with unstable inflation rates which impacts what is considered adequate coverage for an already aging infrastructure. Public sector entities need insurance as much as the private sector, but how are they to keep up?

Captives are a very realistic and now achievable choice of risk transfer for the public sector today. Given WTW's approach to analyzing captive feasibility, analyzing risk portfolios and optimizing choice of how and what to transfer, our partnership provides strength and solid successful pathways. We currently manage over 30 public sector captives, and the list is growing.

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. Entities 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 agencies from undue cashflow volatility.

Both the risk profile of public sectors coupled with inelastic budgets makes evaluating captive options a high priority, however, risk managers in the public sector need to know they are working with a firm that specializes in this Industry.

WTW’s Captive Practice has over 200 dedicated employees, including CPAs, risk finance specialists, actuaries, captive management experts and strategic planning consultants. Utilizing our proprietary Captive Quantified, we will help you make informed decisions to support your mission.

Captive consulting

The Captive Consulting team provides the full range of advisory services throughout the life cycle of a captive from initial feasibility to consultation while growing, to strategic enhancements at maturity, through exit strategy when the captive has completed its role. We provide consulting work for captives located in all domiciles and across a spectrum of industries. For captive owners investigating the value and/or expansion of this risk retention vehicle, our core activities include:

  • Educating senior management on captive concepts and uses
  • Initial assessment of the appropriateness of a captive program
  • Program review and development of potential captive uses
  • Defining the various metrics and analytics involved in making informed decisions related to captives
  • Analyzing the financial impacts (positive and negative) of alternative structures
  • Evaluating the key determinants of domicile selection based on each client’s needs
  • Identifying the optimal uses of a captive
  • Preparation and coordination of formal feasibility studies

Captive management

WTW Captive Management is committed to providing the highest level of quality client service and to meeting the specific needs of each individual captive program. We bring the experience of our extensive worldwide captive practice to each and every client. Our captive management team works closely with the consulting team to provide a broad-based and in-depth advisory capability. Some services include:

  • Coordinating actuarial partners on the annual reserve analysis and benchmarking information
  • Coordinating services provided by captive vendors/partners including banking, legal, audit, tax, investment portfolio managers, fronting and reinsurance intermediaries, TPAs and others
  • Preparing and submitting regulatory filings, financial statements and registrations to the relevant regulatory authorities
  • Participation in annual board meetings
  • Acting as primary liaison with regulatory agencies as the captive’s licensed agent

Why WTW?

  • WTW globally has in excess of 300 captives under management.
  • In the U.S., 36 states have captive enabling legislation. WTW is working in over 20 of these states.
  • A successful and award-winning team that is leading with proprietary analytics

Our research and experience show that a successful captive strategy is equal parts practical and proactive, and grounded in the needs of the business today and designed to achieve its goals for tomorrow. Please reach out to our team for assistance in determining the potential need for captive utilization and feasibility studies.


Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).


Kristina Meier
Senior Client Advocate
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Jason Palmer
Director, Captive and Insurance Management Services

Public Entity Co-Lead, North America
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Public Sector & Education Industry Vertical Division Leader, North America
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