Feasibility Studies

A feasibility study should precede the decision to form a captive or cell captive to examine the advantage, disadvantages and costs related to an organization's specific circumstances. The primary purpose of a feasibility study is to compare the costs and benefits of operating a captive to the costs and benefits of other alternatives for funding specific exposures.

Leading the way with improved feasibility studies.

Artex is a pioneer in the development of feasibility studies. Our unique approach of combining art and science aids in discovering outcomes and solutions that others may overlook, to achieve better, more sustainable risk financing solutions. By conducting a feasibility study, you can establish clear goals and a way forward, including:

• Determining the risks a captive intends to insure
• Identifying and analyzing the underlying exposures
• Forecasting losses
• Modeling financial projections from the options that have been identified and evaluated

Captive health check.

As a captive owner, you know how much time, effort and analysis it took to form the captive, but once it's implemented and operational, how often do you revisit those issues and questions that were analyzed so thoroughly at the beginning? Is the captive aligned with the operational and strategic goals of its owner? Has the owner's philosophy changed since the captive was formed, and has the captive adapted? Has the captive been operating as expected?

As a solutions company, our job isn't finished once the captive has been established. In fact, we help our clients continuously monitor their program, making sure it's responsive and adapts to their needs. We find that mature captive insurance companies benefit from fresh ideas and fresh eyes on operations and returns. Our analysis is designed to offer detailed and actionable recommendations. We take into consideration:

• Current goals and strategies of the captive owner.
• Current captive participation — is it still beneficial and necessary?
• Expansion of captive participation — pros and cons of expanding the captive to other risk-financing areas.
• Maximizing use of captive cash flow.
• Captive domicile — is it still fulfilling the needs of the owner?
• Governance issues — is the captive operating in accordance with the laws and regulations of its home domicile?

Some of these topics are obvious items to consider when reviewing a captive, but often they're shelved due to daily corporate deadlines — especially with shrinking budgets and tight head counts. Our approach is to engage in a conversation and openly discuss your program, with the goal of reenergizing your captive and ensuring it continues to meet your goals.

Actuarial and risk advisory solutions.

The successful implementation, operation and evolution of an alternative risk transfer program requires robust actuarial analysis and risk modelling.

Our actuarial and risk advisory solutions are designed to uncover and provide better, more targeted approaches to help you control risk now and into the future. Our experts help you find gaps, opportunities and ultimately solutions for better risk management. These solutions include:

• Reserving: Your insurance program's liabilities are significant to your operations and can be uncertain. To help you define an accurate assessment, we have proven methodologies including loss reserving, loss reserve specialist and experience studies.
• Risk transfer: Whether you're contemplating acquisitions, divestiture or the addition of new coverage, you can leverage our expertise and services, including risk transfer pricing and risk transfer reviews.
• Risk analysis: Our risk analysis services help you achieve greater confidence and transparency in your insurance program. Our services include enterprise risk management, model review and regulatory risk review.
• Solvency and capital: Maintaining the optimal balance between solvency and capital can be complex, particularly as global regulatory requirements continue to advance at an increasing pace. Our well-established practices can give you clarity on achieving the right mix. These services include capital adequacy reviews; Solvency II; technical provisions; and prospective solvency assessments.

Whether you're considering a captive or a self-insurance fund, seeking advice about an existing vehicle or expanding your current program, we can bring depth and breadth of actuarial expertise at each stage in the life cycle of your initiative: planning, development, operational and windup.

We advise on all types and forms of alternative risk transfer vehicles:

• Single-parent captive
• Special-purpose vehicle
• Risk retention group
• Protected/segregated cell company
• Association captive
• Affiliation insurance program
• Group captive
• Special-purpose (re)insurance
• Self-insurance funds
• Risk pooling vehicles