CAPTIVE
HEALTH CHECK

RISCS CWC CAPTIVE HEALTH CHECK

​

A captive is a dynamic risk management tool and as such should conduct independent stewardship reviews of its operations at the very least on a five-year cyclical basis.

​

​RISCS CWC have successfully pioneered a specific consultancy solution, the RISCS CWC Captive Health Check, to deliver a full audit of a captive’s activities and advise on future strategies accordingly.

​

Our Captive Health Check delivers some or all the following critical reviews depending on the needs of the captive owner:

​

Strategic review

• Review and comment as to whether the existing captive structure remains relevant.

• Confirm whether the strategic objectives for the captive are being met and remain valid.

• Propose refreshed objectives for the captive’s next three to five-year underwriting cycle.

​

Domicile review

• Confirm whether the current domicile continues to be the most suitable location, and if not, then to recommend alternatives.

​​

Structure review

• Confirm whether in its current form the captive is still suitable or whether it should be transformed from its current state to an alternative corporate structure.

​

Operational and governance processes review

• Assess whether the existing operational processes, with emphasis on claims handling, are suitable for the captive’s business.

• Assess whether the captive’s governance regime is sufficiently robust to protect the interests of the captive owner.

​

Manager review

• Confirm whether the current captive management team is the most suitable manager going forward and if not, to recommend alternatives. This will include a review of the current manager’s service level contract and fee structure.

​

Creation of new premium flows

• Consider the inclusion of other traditionally insurable and non-traditionally insurable exposures into the captive to generate a new income stream.

​

Financial proforma

• Deliver a five year financial proforma to take into account any changes we recommend.

​