Ventiv Technology

THE CAPTIVE INSURANCE COMPANY'S GUIDE 5 A CHECKLIST OF TECHNOLOGY CAPABILITIES These are the most commonly identified areas in which a technology solution can help a captive. Captive managers should consider the following checklist when evaluating a technology system, while also bearing in mind that the captive's needs are likely to change and evolve over time. £ Manage complex insurance program structures, including fronting and reinsurance arrangements. £ Handle complex allocation of claims financials per participant (re)insurer considering limits, aggregates, stop-loss and reinsurance-/retrocession arrangements. £ Manage legal compliance with Solvency II or its equivalent (specifically, supporting the reporting requirements based on legislation and standard audit requirements). £ Provide auditable financial transactions to cover all premium and claims- related activities and movements. £ Manage loss exposures, including an understanding aggregate and re- insurance positions. £ Manage the flow of premiums and cash among corporate, captive, commercial insurers, reinsurers and business units, along with the ability to see gross and net positions. £ Provide an auditable and transparent view of ground-up claim costs from the gross and net perspective for: £ Local, corporate and captive (whether direct or reinsurance), £ External market insurers (fronting and coinsurers), and £ Re-insurers, including retrocessionaires. £ Allocate and calculate premiums for global programs to business units or at a more granular level, including tax and fees calculations. £ 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.

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