For my clients, the world of Alternative Risk encompasses every non-commercial insurance risk financing vehicle.
These solutions fit every industry and organizations of every size. The question is which is right for you. Whether the approach is simple, such as assuming higher retentions, or complex, such as forming a licensed captive insurance company, I can help you choose and deploy the right solution for your particular needs.
Alternative risk solutions are tools used to achieve some of the following goals:
- To improve control over cash-flow
- To minimize purchased insurance expenses
- To better control risk, and
- To accumulate equity or wealth
To do these things well requires an understanding of various program designs, cash flow needs, regulatory requirements, the availability and use of reinsurance, service providers available to meet specific needs and financial reporting and planning.
Examples of Alternative Approaches
My experience includes assisting clients with the following alternative risk approaches:
- Increased retention under commercial insurance programs
- Group purchase or affinity insurance programs (including RPG’s)
- Self-insurance (both stand-alone and group) programs, such as trusts, pools, or association programs
- Structured reinsurance programs, including Loss Portfolio Transfers (LPT’s)
- Risk Retention Groups (RRG’s)
- Licensed captive insurance companies
Your Specific Perspective
Beyond my independence and objectivity, I bring an understanding to your particular perspective on the use of an alternative risk approach. So, whether you are contemplating a stand-alone, newly formed alternative approach, such as a single-parent captive, or you are evaluating the opportunity to join an existing program, such as a pool or trust, I can use my experience and expertise to answer the questions of how these alternatives work for you. Regardless of whether you want to build a new program, rent someone else’s or join an ongoing group program, I can help you make the right choice for you.
A Life-Cycle Approach
My client assistance follows the life-cycle of the chosen alternative risk approach. I can help with:
- Feasibility and modeling
- Formation and related implementation services
- Operational services, including ongoing advice, performance measurement, service sourcing and periodic review
So, wherever you might be in the process of alternative risk treatment, I can help with your pressing concerns.
Some Specific Captive Insurer Service Offerings
While the following services are discussed in the captive insurer context, similar approaches are applicable to group, programs, self-insured trusts, and similar vehicles.
Pre-feasibility. My prefeasibility work is focused on educating your decision makers on how a captive might work for your organization, what value you might derive from forming a captive, what the process entails and guidance on potential service providers.
Feasibility. In the feasibility phase, we collaborate with other chosen professionals to answer two important questions: (i) “Do we need a captive, and if not, what do we need?” (ii) “If we don’t need a captive, are there other compelling reasons for forming (or joining) one?”
Formation. When clients decide to form a captive, I provide full post-feasibility (implementation) services. These include:
- Review and oversight of broker-related excess insurance placement and fronting insurer activities
- Assistance with administration
- Identifying and hiring domicile service providers
- Guidance through the domicile application process, including business plan development and domicile meetings, introductions to the domicile’s captive regulatory officials
Operations. Once the captive is formed, I consult on board, committee, and policy decisions – e.g., underwriting protocols, and premium and equity allocations, performance evaluation, strategy, and coordination of providers. The scope of these services is tailored to the client’s specific needs and can be either (i) on-going management or board consulting or (ii) ad hoc engagements on specific topics.
In each of these areas, I work with a captive’s actuaries, accountants, attorneys, investment advisors, tax specialists, insurance and reinsurance brokers, third party administrators (TPAs), captive managers and auditors to assure that the captive is meeting its goals and objectives.
For more information on how I can save your business or organization money, email me for a FREE CONSULTATION.