Captive International Cayman Awards: feasibility firm

Winner: Marsh

Highly commended: Aon

Highly commended: Milliman

Marsh’s proprietary captive model, Marsh Captive Analytics Platform (MCAP), is an interactive, dynamic platform designed to support the comparison of after-tax total cost of risk for multiple programme options. It says MCAP provides a broad perspective to evaluate and forecast multiple programme options for many risk types and the ability to vary retention levels, risk-financing vehicles, and captive domicile. Clients describe Marsh as a company that is always willing to go the extra distance for them.

Aon is described by respondents as exceptionally responsive, collaborative and well positioned. The group says its feasibility process begins with data collection and dialogue with key stakeholders, which underpins actuarial analysis and determination of potential loss costs and premium income. The assessment provides comprehensive analysis of its legal form, insurance programme structure, domicile selection, capitalisation, regulatory and tax issues, as well as providing cash flow analysis and pro forma financial statements.

Milliman assists in evaluating captive carrier feasibility, and assessing the benefits, costs, and risks of alternative retention limits. It says it also evaluates commercial insurance proposals and provides information for use in negotiating insurance prices. It prepares actuarial feasibility studies for internal and regulatory purposes, evaluates funding requirements corresponding to targeted probability levels and the impact of potential loss variances on funding, and allocates premiums for commercial insurance and/or self-insurance funding among departments.