Deciding upon a risk financing strategy and whether or not a captive is a suitable vehicle to manage your retained risk is a key decision. This is why before recommending a strategy, Willis undertakes a feasibility study, a risk retention analysis and extensive financial modelling.
By working with your organization we will seek to answer questions, such as:
- What is the optimum level of retained risk for your business?
- How should this risk be financed?
- What are the specific benefits of a captive or an alternative structure?
- What are the best solutions currently available?
- How valid will these solutions remain when important variables like corporation tax, insurance premium tax or interest rates change?
- Will these solutions stand up to regulatory scrutiny?
- How can you fairly allocate premiums across your business units to both promote effective risk management and optimize capital allocation decisions?
It is questions like these that are behind every risk financing decision; and while no-one knows the future for certain, our sophisticated financial modeling techniques provide the most reliable predictors in the business. These analytical tools, refined over time to a high level of precision, provide an ideal review mechanism enabling corporations to continually adjust their risk management strategy, so that cover, cost and premium allocation are optimized not just now, but also into the future.
The global expertise of our Captive Practice Team, allied with the most up to date captive technology will provide an objective report with pragmatic recommendations including: which strategy is best for your organization, what risks should be considered, where a captive (if suitable) should be located and, of course, a full illustration of the financial impact of captive participation.
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Risk Retention Analysis flyer (320k)