Optimizing Captive Capital – The Benefits of Diversification

Recording Date: Wednesday, November 18, 2020

Description

A hardening commercial insurance market and the economic impact from the on-going pandemic are coming together to put pressure on captives to do more with less. With constraints on capital, how does a captive decide which opportunities it should be underwriting and how best to use that capital. In this webinar we look at the benefits of risk diversification and how a risk-based capital approach may allow captives to underwrite more coverages without significantly increasing capital requirements.

Specific topics covered include:

  • Captive capitalization requirements
  • Traditional line of coverage approach to setting capital requirements
  • Risk-based capital measures and the benefits of diversification
    • Solvency II requirements
    • US and other domiciles
  • Structured reinsurance and the use of a portfolio approach

This webinar is suitable for any current or prospective captive owner looking at how best to use their captive in a hardening insurance market.

Presenters

Michael O’Malley, Managing Director, Strategic Risk Solutions.  Mike leads Strategic Risk Solutions’ consulting practice providing feasibility studies, financial analysis and strategic reviews for single parent, cell and group captive programs.  He has over 20 years’ captive consulting experience and has been at the forefront of some of the industry’s major innovations including the first DOL approval to insure employee benefits in captives and the creation of the world’s first series LLC captive.

Derek Bridgeman, Managing Director, SRS Europe.  Derek leads the firm’s consulting business in Europe, including the provision of captive feasibility studies, captive strategic reviews, technical consulting and risk financing consulting studies. He has over fourteen years’ captive management and consulting experience in Europe and previously led Marsh’s EU Solvency II and Base Erosion and Profit Shifting (BEPS) initiatives and currently represents SRS on various industry led working groups on both topics.

Neil Campbell, Consultant, SRS Europe. Neil is a consultant to SRS specializing in corporate risk financing reviews, strategic use of captives and alternative risk transfer including structured reinsurance programs. He was previously Risk Manager for Zeneca and AstraZeneca, where he was a project leader in the creation of Pharmaceutical Insurance Ltd, the industry mutual for property and business interruption insurance. Neil subsequently ran JLT’s global Life Science Practice in London.