A global advisory, broking, and solutions company has developed a new digital tool to help organisations analyse financial feasibility and future profitability of their captive insurance strategies.

Captive Quantified, the latest release in Willis Towers Watson's interconnected suite of quantification models, is a web-based, interactive design that automates due diligence and financial analysis for assessing the potential value proposition of forming a captive insurance company versus buying traditional insurance or retaining risk on its balance sheet.

The tool also enables organizations to 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, as well as 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 a real game-changer that goes far beyond typical financial analysis used for captive feasibility studies,” said Sean Rider, managing director of consulting and development for global captive practice at Willis Towers Watson. “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.”

The new offering will be introduced at the 2018 Vermont Captive Insurance Association’s (VCIA’s) Annual Conference in Burlington, Vermont, this week.

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