THE CAPTIVE INSURANCE COMPANY'S GUIDE 9
Pursuant to legislation in the United States and in other countries as well, many
parent companies establish captives (typically very small ones) primarily for
the purpose of tax optimization. For most of these, the existing financial and
accounting systems used by the parent or outsourced captive manager are more
than sufficient, and no further technology investment is needed.
Yet a growing number of captives are expected to serve a more comprehensive
set of roles. When it comes to achieving optimal management of the captive's
underwriting and claims data, technology has a key part to play and is aligned
with the top reasons for parent companies having captives: strategic risk
management; cost efficiencies; reduction in insurance premiums; and control
over insurance programs (per the 2015 Aon Global Risk Management Survey
cited in chapter one).
THE CAPTIVE INSURANCE COMPANY'S GUIDE 9
