Services Delivered - Captive Management/Consulting
Plan Design
& Implementation
By analyzing underwriting criteria, Beecher Carlson will develop a plan design for the alternative market solution identified as the best option for your business. After the design components have been identified, we develop specific timetables and milestones for the tasks necessary to implement the captive program. The design will optimize market-effectiveness, and will include:- Actuarial Loss Projections
- Business Plans & Financial Projections
- Application & Licensing
- Fronting & Reinsurance Design & Placement
- Claim Handling Design & Placement
Business Plans & Financial Projections
Beecher Carlson helps you prepare the business plan you need to powerfully present captive concepts to strategic partners. Our comprehensive process results in a well-organized, well-written and fully customized plan that meets the expectations of professional investors and lenders.In the course of this work, we examine your business from an unbiased perspective. This allows us to provide valuable recommendations to help move you closer to your business, financing and strategic goals.
Clear, Concise & Compelling Plans
To develop the best plan, we rely upon the active involvement of your company’s management, Boards, investors and service providers and count on consistent participation in high-level strategy and Q&A sessions, assumption-building exercises and the writing process.Smart Assumptions & Projections
Beecher Carlson helps clients develop comprehensive financial assumptions and financial projections, resulting in a complete set of balance sheet, income statement and cash flow statement forecasts for up to five years.Our step-by-step process first assists in developing and analyzing the financial and business assumptions behind each of your major income and expense categories, including premium levels, actuarial loss projections, sales and marketing, management and staffing, and overhead expenses. We then assist in finalizing balance sheet and cash flow assumptions including key items that directly affect cash flow, such as loss payout patterns. We then use these assumptions to generate financial projections that powerfully portray what you consider to be the most likely scenario for the financial future of your business.
Application & Licensing
Beecher Carlson coordinates all required providers for services and related agreements. If necessary, we will prepare a regulatory briefing or position paper to present to insurance regulators. These documents can then be used as the basis of our initial meeting with the selected domicile to determine its receptiveness to the proposed captive formation.After the initial meeting with regulators, Beecher Carlson prepares the application for licensure, which includes:
- A narrative description of the business plan; organizational structure, including capitalization; identification of individuals who will control the company and who will provide the various areas of necessary insurance expertise including claims management and IT services; risk to be insured; management; fronting; company retention; reinsurance; rates and rating classification systems; and marketing plan.
- Revised five-year projected financial statement pro forma reflecting operational results and related assumptions.
- Loss analysis and feasibility opinions by certified actuaries.
Fronting & Reinsurance Design & Placement
Successful design and marketing of fronting and reinsurance services is critical for the long-term success of the captive. For over 27 years, Beecher Carlson has coordinated arrangements with all of the major alternative market fronting and reinsurance companies. Because of this experience, we recognize the strengths and shortfalls of the major players. Our goal is to match the fronting and reinsurance carrier appetite and abilities with the needs of the client.Claim Design & Placement
Up to 90 percent of a captive’s funds are released through claims. To ensure long-term financial stability, its critical that claims handling be designed for optimal accuracy and efficiency.Whether claims will be handled in-house or by a third-party administrator, Beecher Carlson will design a streamlined claims system tailored to your specific needs, structure and capabilities. The process will include the creation of a concise yet comprehensive claims manual (or contract standards) setting forth efficient claims handling procedures, and supervision of the systems implementation.
We will also generate a request for proposal for third party claims administration and assist in the selection process.
