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Captive Consulting Services

Successful companies don’t let the grass grow under their feet. They embrace change and use it to create competitive advantage. When it comes to your risk financing strategy, the same principle should apply. Changing conditions will mean that, in order to continue delivering value, your captive needs to evolve, and where a captive is no longer viable, new risk financing alternatives may exist, designed specifically for the modern marketplace. In addition to our feasibility study and in order to ensure the continuing effectiveness of your captive Willis offer the following consulting services:

Captive review

Willis can assess your captive’s all round performance as an integral part of your risk management strategy or concentrate on one particular area by asking key questions including: Is your captive still a cost effective risk management solution? How do rates of return, revenue generation and compliance measure up? Has the business environment and strategic direction of your organization changed since the captive was established? Have there been changes to your structure and risk exposures during the period?

Domicile review

Being located in the right domicile is a fundamental requirement for a successful captive strategy. A Willis Domicile Review will identify whether the current location is best for the long term future of your captive. Where a move is deemed necessary, we can advise on the most efficient and economic way to relocate, together with a schedule of the associated costs and tasks.

Merger and acquisition review

Optimizing the benefits of business restructuring – mergers and acquisitions – is paramount in today’s economy. Willis specializes in advising clients on how to maximize merger cost savings and realign captive risk financing strategies with the needs of the restructured business. This includes looking at how best to integrate captive subsidiaries which have been acquired and using risk financing mechanisms to effectively segregate the liabilities of disposed entities.

Alternative risk financing solutions

Where a captive’s ability to add value is severely diminished, or where a captive is unsuitable from the outset, Willis can advise on a range of innovative risk financing alternatives. These include: protected cell companies (which offer the benefits of a wholly owned captive but require less capital and management time); internal financing options such as insurer accounts and virtual captives; or traditional risk transfer solutions, sourced at excellent rates.

Exit strategies

Should the captive have outlived its usefulness we can recommend exit options, time-lines and costs. Our advice will be underpinned by the knowledge, expertise and global resources that make Willis one of the globe’s leading captive practitioners and will give you the management information you need to make an informed decision about your current risk financing strategy.

On-going strategic advice to self-managed captives

Where an organisation has chosen to manage their captive themselves, or to retain risk in a designated fund, Willis is happy to provide bespoke, independent consulting services.

Whether to challenge and validate existing strategies or to consider new risk financing opportunities, Willis leverages our global, specialist expertise to act as a trusted advisor to our clients.

In a constantly evolving regulatory environment, and with new pressures on captives, and their parents, Willis can help navigate the changing landscape.

Our consulting work for self-managed captives includes

  • Targeted assessments of Solvency II implications

  • Audit and recommendations for appropriate governance structures

  • Provision of outsourced services including:

    • actuarial analysis,

    • reporting and management information,

    • underwriting and

    • administration

Group Captive Insurance Companies - A construction industry alternative

Group captives have been an effective insurance solution for mid-market companies fo many years. They allow committed, well managed companies with excellent loss experience to increase their retentions and share in the benefits of effective claims management and loss control. Historically they have provided Workers Compensation, General Liability and Auto Liability insurance. Recently with the implementation of Healthcare Reform (PPACA) there has been a growth of group captives for Medical Malpractice insurance.

These captive insurance companies are specifically deisgned to underwrite the risks of their participants in such a way that loss exposures are shared via a communal risk pool and transferred via collective reinsurance. As the insured's are the owners, participants play an active role and are beneficiaries of the underwriting and investment performance of the captive.

Willis manages two successful group captives, Alembic and Construction Solutions("CS"). CS is designed for the construction industry. For more information on CS and group captives for the construction industry see below.

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