Managing risk across strategy, operations, compliance and finance provides stability and certainty within any organisation, and layering this with a proper insurance program structure, policies and captive insurance operations provides additional C-suite security.
EY advisors come from a wide range of backgrounds, including consulting, brokerage, underwriting, claims, legal, tax, transactions and actuarial. They provide tailored to complex risk management and actuarial issues, identifying and quantifying risk and volatility; identifying alternative approaches, including the strategic use of a captive insurance company; and developing and helping to implement tools to monitor and measure an organisation’s success.
EY advisory teams work side by side with their tax, actuarial, transfer pricing and regulatory services teams to provide a broad, cross-functional, suite of services that applies equally to large insurance conglomerates or smaller, niche captive insurance companies.
EY teams help organisations find creative ways to protect their businesses’ assets, revenue streams and employees and hedge against potential liability.
This is driven by enhancing the overall risk management strategy through a captive insurance structure. Captives can offer a number of advantages, including centralising risk and risk expenditure, capturing profit insurance companies normally enjoy, and expanding insurance coverage and capacity opportunities – all in a strategic and tax-efficient manner.
- Cost reduction studies and risk management function optimisation
- Identification and quantification of risk
- Insurance programme coverage and policy reviews
- Retention and sensitivity analysis
- Insurance programme and vendor servicing standardisation studies
- Captive insurance company feasibility and utilisation studies
- Captive insurance company consolidation analysis
- Claims review and leakage studies
- Cyber risk evaluation and programme development
- Efficiency and optimisation analysis for existing captive structures
EY captive actuarial services professionals across the globe support the formation and management of captives. This includes analysing risks to be written by the captive, pricing of risks, analysing capital requirements, pricing of reinsurance, provision of actuarial studies and opinions regarding claim liabilities for internal management and regulators, and analysing the economic impact the captive has on the affiliates and the company in aggregate. We can also help structure insurance or reinsurance contracts to implement the designed captive programmes.
EY captive actuarial analysis is driven by qualified actuaries with experience in all these areas and in most regulatory jurisdictions worldwide. We work closely with clients to provide a tailored analysis that meets their specific needs and objectives, and all analyses and conclusions are documented in reports that meet actuarial, regulatory and individual client requirements.
- Regulatory actuarial opinions and self-contained actuarial reports for regulators
- Actuarial reports that meet auditors’ specific requirements
- Funding analysis for prospective exposure (pricing)
- Actual vs. expected analysis to track both past and expected future emergence levels
- Payout patterns development
- Discounting analysis
- Analysis to determine optimal retention levels
- Reinsurance analysis to determine the cost or benefit of a reinsurance purchase
- Confidence level review to determine expected level of loss, as well as associated variations in loss
- Capital management
- Exploration of the consolidation of self-insurance exposure