WTW Develops New Financial Modeling Tool for Captive Insurers

Willis Towers Watson (WTW) has developed a new financial modeling tool for captive insurers called Captive Quantified. According to WTW, this is a first-of-its-kind digital tool to help organizations analyze financial feasibility and future profitability of their captive insurance strategies. The company will introduce the product at the 2018 Vermont Captive Insurance Association's (VCIA's) Annual Conference in Burlington, Vermont.

The Web-based, interactive design 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 unique 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 WTW's interconnected suite of quantification models and can be used in combination with other tools to support an organization's broader risk management strategy.

"Captive Quantified is a real game changer that goes far beyond typical financial analysis used for captive feasibility studies," said Sean Rider, managing director, Consulting and Development, Global Captive practice, WTW. "This powerful tool will enable profoundly 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. We are proud to present this at VCIA as a further demonstration of Willis Towers Watson's leadership in the market."