Ventiv Technology

THE CAPTIVE INSURANCE COMPANY'S GUIDE 4 When one stops to consider the range of operational activities for which today's captive is responsible, it's no wonder that captives face many of the same challenges as a commercial insurance company. Now more than ever, captive managers need control, auditability, efficiency, and transparency over the entirety of their operations. 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, however, informal systems and processes are often not adequate. For many captives, the answer is integrated risk management (IRM) solutions 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. Every captive will have different needs, which is why it's so important that the process of selecting and implementing a technology solution should be a consultative one, based on extensive discussion and exchange of information. The system design will vary based on a wide range of factors unique to each captive, including the type of captive, the program structures in place, the countries in which the captive operates and the parent organization's expectations for the captive. The captive's flow of information, which is unique to each captive, is another important factor in designing a technology solution. Any technology system should be capable of integrating with external systems (including those of carriers and TPAs) and internal systems (such as the captive's accounting system). Moreover, a system should be flexible and adaptable so it can accommodate future changes to information flows; a flexible system is also more likely to be cost-effective and able to be implemented in a reasonable amount of time. TYPICAL OPERATIONS SUPPORTED BY INTEGRATED RISK MANAGEMENT SOLUTIONS CHAPTER 2: LOOKING AT SOLUTIONS Underwriting Pricing Premium Allocation Insurance contracts (incoming) Insurance contracts (outgoing–reinsurance) Certificate issuance/ tracking Premium invoicing Premium paid tracking Premium written/ earned position Claims Claims data consolidation Claims management process Payment/Outstanding authorization/cash call process Co-Insurer recoveries Reinsurance recoveries Finance Transaction processing Management reporting Sums paid and received tracking Interfaces with finance systems Underlying data for actuarial use Corporate Regulatory filings Risk Management Membership Loss control Flexible rating Policy workflow Diaries Contact management Certificate issuance Reporting and analytics

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