Ventiv Technology

THE CAPTIVE INSURANCE COMPANY'S GUIDE 1 INTRODUCTION Since 2011, the number of captive insurance companies has grown by some seven percent annually, according to the MRMR Captive Benchmarking Report 2014. Such a healthy rate of growth suggests parent organizations appreciate the value to be had from establishing and managing their own insurance carrier. Aon's 2015 Global Risk Management Survey has confirmed the top reasons behind this trend: REASONS FOR CAPTIVES Reason 2015 2013 Strategic risk management tool 33% 18% Cost efficiencies 16% 18% Reduction of insurance premiums 11% 12% Control on insurance programs 10% 11% Access to reinsurance market 9% 7% Risk finance expense optimization 8% 12% Cash flow optimization 4% 7% Other 4% 6% Tax optimization 4% 4% Ability to establish reserves 4% 4% Parent companies must constantly reviewing the performance of their captives, to ensure they are continuing to deliver value and remain aligned with the corporation's strategic objectives. With increased regulation and governance on both captives and their associated parent, there is a heightened need for efficient operations in the captive; effective handling of data is at the core of this need. In particular, captives handling larger volumes of data or with many data sources cannot afford to ignore the needs resulting from increased regulation and governance. As business requirements change (for instance, the captive's need to adapt to a change in the risk management strategy of the parent), the technology and associated data management need to evolve with those changes. Different types of captives will need different solutions, so it is certainly not the case that one size fits all. The following chapters will examine how captive managers can use technology to overcome data challenges and the resulting benefits. Chapter 1: Key Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Chapter 2: Looking At Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Chapter 3: Understanding the Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Chapter 4: Who Benefits Most? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chapter 5; Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Chapter 6: Technology Investment Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

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