CAPTIVE
EVOLUTION & PRODUCT INNOVATION

RISCS CWC CAPTIVE EVOLTION & PRODUCT INNOVATION

​

We develop and introduce new insurance products to captives to help clients monetise the value of the risks they face from their day-to-day business activities.

 

Our consultants will work with you to develop and implement the right captive and alternative risk business strategy to enable your profits and efficiency to soar.

 

The broader strategic role that a captive can fulfil in an organisation has often been under-utilised. Whilst driving risk management improvements, harmonising corporate deductibles and formalising self-insured retentions are three of the key uses of a captive, there are a number of more creative and strategic uses for which a captive can be employed that will heighten its overall financial benefit to a business by monetising those risks that are inherent in an organisation. These are built in conjunction with specialist reinsurance markets.

​

Most captive owners have well-established ERM processes which are an integral part of managing the parent company’s business. They provide a guide to systematically identify, assess, treat, monitor and review risks with the aim of improving the captive’s ability to reduce the likelihood and/or impact of identified risks that may affect the achievement of business objectives.

​

We also know that the traditional insurance markets do not provide sufficient, or even any, cover for key risks that companies face on a daily basis. Our approach to risk mitigation is refreshingly different as we actively design reinsurance solutions for these under / un-insured exposures thereby generating a new revenue stream to the captive. Some of the examples we have developed include:

​

​

Business Interruption

​

Capacity from the traditional insurance markets for Business Interruption is unpredictable in terms of quantum and uncertain in terms of coverage due to policy exclusions plus complex and questionable interpretation of policy language, especially now with the current Covid-19 threat. This state of affairs provides no comfort or certainty of cover for any buyer. Increasingly we are seeing buyers turn to their captives to provide this cover, backed by specific alternative reinsurance markets or alternative risk transfer structures. We believe that such structures can provide a captive with:

​

• A new profit generating revenue stream

• Sophisticated cover that responds when needed

​

​

Protection for Uninsurable Risks

​

There are a number of identified ERM risks that exist within organisations that are not catered for by the traditional (re)insurance market.

 

• Contingent Business Interruption

• Loss of use / loss of attraction, particularly in non-damage scenario

• Commodity / trading risk

• Reputational risk

• Regulatory exposures

• Supporting a company’s growth plans
   

​