Willis Towers Watson has launched a digital tool to help organizations analyze financial feasibility and future profitability of their captive insurance strategies.
The new system, Captive Quantified, is a web-based, interactive design that automates due diligence and financial analysis to help organizations assess the potential value proposition of forming a captive insurance company compared to purchasing traditional insurance or retaining risk on its balance sheet. The tool also helps organizations identify the best combination of risks to include in a captive with a predetermined level of capitalization while identifying the best domicile for its needs.
Additionally, users can perform live and interactive stress testing by changing assumptions and test scenarios to quickly evaluate capital adequacy and determine future capitalization needs.
Captive Quantified is the latest release in Willis Towers Watson’s interconnected suite of quantification models and can be used in combination with other tools to support an organization’s broader risk management strategy.
Sean Rider, managing director, Consulting and Development, Global Captive practice, Willis Towers Watson, said the tool will enable more sophisticated conversations with finance decision makers as to the value, volatility and efficacy of the captive proposition at both the feasibility stage and throughout the life of the captive.
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