Ventiv Technology

THE CAPTIVE INSURANCE COMPANY'S GUIDE 6 CHAPTER 3: UNDERSTANDING THE BENEFITS So far we have covered the captive's need for accurate, comprehensive data and how technology can help captives meet that need. Managing ever- expanding volumes of data—whether related to risks, policies or claims—is a clear driver to adopting technology. Now we'll turn to the value you should expect to realize through an effective technology solution. When considering an investment in technology, it is important to prepare a robust business case and identify the benefits that will arise from the investment. The key benefits captive managers should expect from a technology solution include: MEETING REGULATORY REQUIREMENTS In our experience, being able to meet expanding regulatory reporting requirements is the primary reason captive managers today invest in risk management information systems. A key benefit of an IRM solution is that it provides captive managers with reliable, auditable data that can be easily analyzed and reported upon. MEETING THE PARENT COMPANY'S REPORTING NEEDS Meeting the parent company's own reporting requirements is another key benefit of improving a captive's data management. A captive forms part of its parent's balance sheet, and corporate boards want accurate reporting on the captive's potential impact on the enterprise's finances. IMPROVING RISK MANAGEMENT The rise of corporate governance around risk management has led to more parent-initiated auditing; as a result, captives must respond to a mandate for more formal data management and enhanced reporting. Accurate tracking and reporting on the evolvement of identified risks is key for both the management and reporting of risks. TIMELY NOTIFICATION OF REINSURANCE CLAIMS Managing program complexity and reinsurance or retrocession arrangements are key benefits of risk technology. Allocation of claim financials and premiums handling is another important benefit. And because reinsurers have strict claim- submission deadlines, managing the notification and recovery of claims from commercial reinsurers is especially critical.

• Cover