1 August 2018Analysis

Willis Towers Watson introduces financial modelling tool for captive owners

Willis Towers Watson has introduced a digital tool to help organisations analyse the financial feasibility and future profitability of their captive insurance strategies.

Named ‘Captive Quantified’, the web-based, interactive design automates due diligence and financial analysis to help organisations assess the potential value proposition of forming a captive insurance company compared to purchasing traditional insurance or retaining risk on its balance sheet.

Willis Towers Watson will show off the product at the 2018 VCIA Annual conference next week in Burlington, Vermont.

The tool helps users identify the most appropriate combination of risks to include in a captive with a predetermined level of capitalisation while identifying the best domicile for its unique needs.

Users can also perform live and interactive stress testing by changing assumptions and test scenarios to quickly evaluate capital adequacy and determine future capitalisation needs.

“Captive Quantified is a real game changer that goes far beyond typical financial analysis used for captive feasibility studies,” said Sean Rider, managing director, consulting and development, global captive practice, Willis Towers Watson. “This powerful tool will enable profoundly 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. We are proud to present this at VCIA as a further demonstration of Willis Towers Watson’s leadership in the market.”