WCF: Clarity and information vital in captive creation
Companies that set up captives need to have a clear idea of what they want to do with it and what their approach to risk is right from the start, according to a panel at the recent World Captive Forum.
The panel, which was recorded by Business Insurance and which concluded the event, was headed by Anne Marie Towle, hief executive, Hylant Global Captive Solutions, along with Michael Meehan, principal at Milliman and Jason Ting from HDI.
It was entitled: “Lessons learned to assist in your captive journey.”
The panel talked about a specific case study in which an unnamed company that operates in retail operations across America at multiple locations that had been exploring a captive concept.
Meehan said that in some cases people stick to what they are familiar and comfortable with, saying that he knew of some self-insured clients that have been self-insured for years but have no desire to get involved in captives.
In the case study, Towle said that the owner eventually ended up setting a sponsored cell facility that gave them a degree of hybris flexibility.
The panel agreed that data gathering is important ahead of the formation of a captive, especially for a company that already has insurance in some form.
Leadership was also highlighted as a key element for captive creation, as the panel pointed out that it can be important to appoint one executive to drive a captive project through to completion.