Willis Towers Watson has launched a new digital tool called Captive Quantified aimed at helping organizations analyse the financial feasibility and future profitability of their captive insurance strategies.
The new system is a web-based, interactive design that automates due diligence and financial analysis to help organizations assess the potential value of forming a captive insurance company compared to purchasing traditional insurance or retaining risk on its own balance sheet. The tool also helps organizations identify the best combination of risks to include in a captive entity with a predetermined level of capitalization whilst identifying the best domicile for its needs. The users can further perform live and interactive stress testing by changing assumptions and test scenarios to quickly evaluate capital adequacy and determine future capitalization needs.
The suite can be used by organizations in their broader risk management strategy.
Captive Quantified Testing Strategy Dashboard
Stress Test Analysis
Economic Value Analysis
Sean Rider, MD, Consulting and Development, Global Captive practice at Willis Towers Watson has said: “this tool will enable more sophisticated conversations with finance decision makers as to the value, volatility and efficacy of the captive proposition at both the feasibility stage and throughout the life of the captive.”