3. Products
Unfortunately, many captive managers handle their risk management
needs with a variety of ad-hoc (typically spreadsheet-based) and localized
systems. As captives grow in complexity and responsibility, informal
systems and processes are often inadequate. For many captives, the
answer is a risk management information system (RMIS) that automates
a broad range of operations, from underwriting to claims management to
finance and corporate and regulatory reporting. These systems usually
integrate with their financial plus appropriate internal and external
systems and should be able to:
• Manage complex insurance program structures
• Handle complex allocation of claims financials
• Manage legal compliance with Solvency II or its equivalent
• Provide auditable financial transactions to cover all premium and
claims-related activities and movements
• Manage loss exposures
• Manage the flow of premiums and cash
• Provide an auditable and transparent view of ground-up claim
costs from the gross and net perspective
• Allocate and calculate premiums for global programs
• Track captive incoming and outgoing premiums and commissions
• Calculate and track proportional and non-proportional premiums
per participant re/insurer
• Calculate premiums written to premiums earned
THE CAPTIVE INSURANCE RENAISSANCE | 7
