Evaluate and Optimize Your Captive With the Industry-Leading Spring CARE system.

Often, as a captive matures, companies need to reexamine their captive to determine if changes need to be made for positive or negative experience, surplus release or additions and opportunities to add new lines of coverage like benefits or cyber risk. It is also a good idea to re-evaluate a captive when the regulatory environment has changed dramatically, new risks have emerged (or become stronger than anticipated) or the business expands. To address all these potential changes, our Spring CARE (Captive Analytical Risk Evaluation) Team recommends a captive evaluate its risk appetite and risk exposure at least every 5 years.

captive optimization

The Captive Optimization Cycle

Captive optimization starts with a captive refeasibility study. Every refeasibility study is different to varied degrees. The scope and resources required to conduct the study are dependent on the captive’s current structure, the events that triggered the study and the goals of the company. That said, through our Spring CARE system, there is a carefully-constructed evaluation structure in place that we use as our team works through the process of evaluating your captive.

A typical Spring refeasibility study, through the Spring CARE system, is conducted using the following structured processes:

Captive Optimization Process

Goals Stage:

  • Confirm the goals and objectives – new and old
  • Collect data
  • Interviews with senior management and other stakeholders

Impact Stage:

  • Conduct analysis of risk financing optimization
  • Review current reinsurance levels and optimize the use of reinsurance
  • Stress testing of the captive

Strategies Stage:

  • Analysis of additional lines of coverage that could be insured by the captive
  • Surplus management

Structure Stage:

  • Identify investment management best practices
  • Determine optimal collateral structure

Measurement Stage:

  • Analyze captive performance metrics against industry benchmarks
  • Develop implementation plans for recommended actions
  • Establish benchmarks for future performance

And at the conclusion of our captive evaluation period, the Spring CARE team will produce a refeasibility report for your company. In this report, we will review our findings and report our optimization recommendations.

You can find out more about captive optimization and/or discuss a refeasibility study for your captive by contacting our Spring CARE team by filling out and submitting the form below:

Related Case Study: Captive Refeasibility Study for Fortune 500 Organization