After a period of adaptation, the various stakeholders within the parent companies will have acquired the skills to use the captive tool effectively and can turn their focus to giving fresh impetus to their risk financing strategy. This is a good time to run a diagnostic on the captive, review its role and positioning and look at potential means of optimising it.
2RS solutions respond to the following questions:
- Is the risk profile in line with the risk financing strategy?
- Should the retention be increased or decreased?
- What should be done with excess reserves?
- Is asset management relevant and in keeping with its risk profile?