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CAPTIVE
EVOLUTION & PRODUCT INNOVATION

RISCS CAPTIVE EVOLTION & PRODUCT INNOVATION

We develop and introducenew insurance products to captives to help clients monetise the value of the risks they face from their day-to-day business activities.

 

Our consultants will work with you to develop and implement the right captive and alternative risk business strategy to enable your profits and efficiency to soar.

 

The broader strategic role that a captive can fulfil in an organisation has often been under-utilised. Whilst driving risk management improvements, harmonising corporate deductiblesand formalising self-insured retentions are three of the key uses of a captive, there are a number of more creative and strategic uses for which a captive can be employed that will heighten its overall financial benefit to a business by monetising those risks that are inherent in anorganisation.These are built in conjunction with specialist reinsurance markets.

 

Most captive owners have well-established ERM processes which are an integral part of managing the parent company’s business. Theyprovide a guide to systematically identify, assess, treat, monitor and review risks with the aim ofimprovingthe captive’s ability to reduce the likelihood and/or impact of identified risks that may affect the achievement of business objectives.

 

We also know that the traditional insurance markets do not provide sufficient, or even any, cover for key risks that companies face on a daily basis. Our approach to risk mitigation is refreshingly different as we actively design reinsurance solutions for these under / un-insured exposures thereby generating a new revenue stream to the captive. Some of the examples we have developed include:

 

Business Interruption

 

Capacity from the traditional insurance markets for Business Interruption is unpredictable in terms of quantum and uncertain in terms of coverage due to policy exclusions plus complex and questionable interpretation of policy language, especially now with the current Covid-19 threat. This state of affairs provides no comfort or certainty of cover for any buyer. Increasingly we are seeing buyersturn to their captives to provide this cover, backed by specific alternative reinsurance markets or alternative risk transfer structures. We believe that such structures can provide a captive with:

 

  • A new profit generating revenue stream

  • Sophisticated cover that responds when needed

Protection for Uninsurable Risks

 

There are a number of identified ERM risks that exist within organisations that are not catered for by the traditional (re)insurance market.

 

  • Contingent Business Interruption

  • Loss of use / loss of attraction, particularly in non-damage scenario

  • Commodity / trading risk

  • Reputational risk

  • Regulatory exposures

  • Supporting a company’s growth plans
     

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Our belief is that all legal activities can be included in a captive portfolio.

We work with our clients to push the boundaries of captive and ART solutions.

​​RISCS provides independent, innovative, strategic risk consultancy to brokers, underwriters, corporates, and captives across the world. Drawing on decades of experience in the global captive and ART industry, we work with our clients to build an individual RISCS Strategic Risk Pathway. Delivering a range of services and knowledge from the very first tentative self-insurance steps through to full captive operation and protection, we work with and support our clients every step of the way.