“ A captive’s performance will, in the end, be determined by its profitability, which is linked to the carrier’s ability to correctly isolate financial detail from first dollar to policy limits.”
timely and accurately facilitate captive cessions. The quicker the cession, the sooner the captive can begin to earn investment income on the loss fund. Using integrated financial and policy issuance systems, carriers can also readily determine schedule F and ‘Gap’ collateral requirements. This is essential in properly managing a captive as it continues to grow and pay out claims, as well as to give the captive and its owners the maximum amount of lead time to accurately forecast when additional capital or insured assessments may be required.
Group captives and captives with multiple cells assuming various
quota share layers also require accurate accounting of losses applicable to different risk-taking layers. Most captives have aggregate attachments whereby the carrier provides a ‘stop-loss’ coverage to cap the captive’s liability. In addition, more complex group captives can have individual member deductibles that sit beneath the captive, placing greater importance on the carrier’s ability to precisely allocate loss and loss adjustment expense to each captive layer. A captive’s performance will, in the end, be determined by its profitability, which is linked to the carrier’s ability to correctly isolate financial detail from first dollar to policy limits.
Actionable information The capstone to the process is the conversion of abundant and
efficiently flowing data into information. It does little good to create productivity gains that are wasted on unproductive endeavours. If
66 CAYMAN CAPTIVE
Positioning for success SPARTA and its business partners continue to derive competitive
benefit from a shared and evolving technology experience. Capturing, connecting, flowing and ultimately delivering information to the captive from the carrier data set is the best way to position the carrier and captive for today’s opportunities. But it is the future that we think about when we consider the ability to leverage the power and efficiencies afforded by state-of-the-art technology. We believe that those who have positioned themselves in this way will be able to take full advantage of a rising market. This is an essential part of SPARTA’s captive technology vision.
Philip Cameron, CPCU, is vice president of marketing at SPARTA Insurance. He can be contacted at:
pcameron@spartainsurance.com
a system is robust, interoperable and specialised, then it is capable of producing unique business analytics that are diagnostic of performance at the lowest level of detail captured. Designing key performance indicators, early warning signals and benchmarks into a simple scorecard that is available through portal technology is a good way to create a common language of business information. It places carrier and captive on equal footing and reinforces the philosophical underpinnings of long-term commitment and stability of placement essential to the carrier-captive relationship.
©
iStockphoto.com / Jason_V
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76