Careful planning leads to better solutions.

And better risk management.

The decision to form a captive or cell captive (a ‘captive’) should be preceded by a feasibility study which is an examination of the advantage, disadvantages and costs as they relate to an organization’s specific circumstances. The primary function of a feasibility study is to compare the costs and benefits of operating a captive against the costs and benefits of other alternatives for funding specific exposures.

Artex is a pioneer in the space of feasibility studies. Our combined use of art and science aids in finding outcomes and solutions others may miss or overlook to achieve better, and more sustainable, risk financing solutions. By conducting a feasibility study, you will be able to establish clear goals and a way forward, including:

  • Determining the risks a captive intends to insure
  • Identifying and analyze the underlying exposures
  • Forecasting the losses
  • Modelling financial projections from the options which have been identified and evaluated
Captive Health Check

Change is constant and affects the continued success and health of a captive. Artex offers in depth analysis of current captives to uncover gaps, inefficacies and offers guidance for improvement. We find that mature captive insurance companies benefit from fresh ideas and fresh eyes on operations and returns. Our analysis is designed to offer detailed and actionable recommendations. We take into consideration:

  • Current goals and strategies of the captive owner
  • Current captive participation-is it still beneficial and necessary?
  • Expansion of captive participation-pros and cons of expanding the captive to other risk financing areas
  • Maximizing utilization of captive cash flow
  • Captive domicile – is it still fulfilling the needs of the owner?
  • Governance issues – is the captive operating in accordance with the laws and regulations of its home domicile?
Actuarial and Risk Advisory Solutions

The successful implementation, operation and evolution of an alternative risk transfer program requires robust actuarial analysis and risk modelling.

Whether you are considering a captive or a self-insurance fund, seeking advice in relation to an existing vehicle or expanding your current program, we can bring depth and breadth of actuarial expertise at each stage in the life cycle of your initiative: planning, development, operational and windup.

We advise on all types and forms of alternative risk transfer vehicles:

  • Single-parent captive
  • Special-purpose vehicle
  • Risk retention group
  • Protected/segregated cell company
  • Association captive
  • Affiliation insurance program
  • Group captive
  • Special-purpose reinsurance
  • Self-insurance funds
  • Risk pooling vehicles

Ready to explore how a feasibility study, captive health check or actuarial review can help your business? Contact us.

Captive health check

Know when to reassess.

As a solutions company, our job isn’t finished once the captive has been established. In fact, we help our clients continuously monitor their programs making sure it is responsive and adaptive to their needs. The captive must evolve as insurance needs and the business environment change.

As a Captive owner, you know how much time, effort and analysis was put into to form the captive, but once it is implemented and operational, how often are those issues and questions, which were analyzed so thoroughly at the beginning, revisited? Is the captive aligned with the operational and strategic goals of its owner? Has the owner’s philosophy changed since the captive was formed, and has the captive adapted? Has the captive been operating as expected?

While these questions may have been addressed, it is often done in a reactionary state and not particularly formalized. In today’s world of increased scrutiny and corporate governance, it becomes clear that alignment of the captive within the corporate strategic plan and governance structure should not be ignored.

By entering into a Captive Health Check with Artex, our experts will review:

  • Current goals and strategies of the captive owner
  • Current captive participation–is it still beneficial and necessary?
  • Expansion of captive participation–pros and cons of expanding the captive to other risk financing areas
  • Maximizing utilization of captive cash flow
  • Captive domicile–is it still fulfilling the needs of the owner?
  • Governance issues–is the captive operating in accordance with the laws and regulations of its home domicile?

Some of these topics are obvious items to consider when reviewing a captive, but often they are shelved due to daily corporate deadlines. This is especially true with shrinking budgets and tight head counts. Our approach is to engage in a conversation and openly discuss your program, which hopefully will energize your captive to ensure it meets your goals.

Actuarial and Risk Advisory Solutions

Discover better ways to control risk.
Tested solutions for a spectrum of scenarios.

Our Actuarial and Risk Advisory Solutions are designed to uncover and provide better, more targeted approaches to help you control risk now and into the future. Our experts helps you find gaps and opportunities and ultimately solutions for better risk management. These solutions include:

  • Feasibility study and captive health check
  • Reserving
  • Risk transfer
  • Risk analysis
  • Solvency and capital

Feasibility study and captive health check
You can read those details here and here.

Reserving
Your insurance program’s liabilities are significant to your operations and can be uncertain. To help you define an accurate assessment we have proven methodologies including: loss reserving, loss reserve specialist, and experience studies.

Risk transfer
Whether you are contemplating acquisitions, divestiture or the addition of new coverage, you can leverage our expertise and services, including risk transfer pricing and risk transfer reviews.

Risk analysis
Our risk analysis services help you achieve greater levels of confidence and transparency in your insurance program. Our services include enterprise risk management, model review and regulatory risk review.

Solvency and capital
Maintaining the optimal balance between solvency and capital can be complex, particularly as global regulatory requirements continue to advance at an increasing pace. Our well-established practices can give you clarity on achieving the right mix. These services include capital adequacy reviews; Solvency II; technical provisions; and prospective solvency assessments.

To uncover better risk management through our Actuary and Risk Advisory Solutions, start here.

The Art of Risk

At Artex, we believe there is more to alternative risk management. As a trusted leader and provider of diverse (re)insurance and ILS solutions, our global team operates at the intersection of art and science—where creative thinking meets expertise and superior outcomes are made. That’s how we’re able to fully understand our clients’ needs and deliver the most comprehensive solutions available.

Established in more than 30 domiciles internationally, we’re here to help you make empowered decisions with confidence, reduce your total cost of risk and improve your return on capital. At Artex, we believe in finding you a better way.

 

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