How Benchmarking Can Boost Captive Value

In a rapidly changing political, technological, and economic landscape, companies are not only concerned about managing ever-changing risks, but in getting the most from their risk management spending. Over the past several years, more businesses have turned to captives as a way to gain control over how their risk capital is deployed.

For many who already use captives, their questions revolve around:

• How can we get more value from our captive?
• How can we be sure we’re making the most of our captive?

The answers can often be given in one word: benchmarking.

 Benchmarking can help:  

1. Determine whether your captive is running optimally by comparing it to industry standards. Benchmarking can help you answer questions such as: Is our captive based in the right domicile? Are we using the right structure? Are we meeting regulatory and legal requirements?   What are the traditional and non-traditional lines of coverage most often used in my industry?
2. Uncover new opportunities for your captive based on what your peers are doing. There may be lines of coverage that would be particularly well-suited to your captive. There also may be emerging risks and exposures that should be covered through the captive.
3. Anticipate challenges. Benchmarking can help you uncover trends and anticipate market changes and emerging exposures that may be closer than you think.

Benchmarking provides the opportunity to analyze your captive in the context of your industry, company size, or parent region — offering additional ways of unlocking value from the captive.

In a world of constantly changing solutions and requirements, benchmarking offers the opportunity to regularly re-evaluate your insurance position.

Benchmarking provides a way to better position your captive, answer questions from leadership, and identify looming challenges — and opportunities.