Case Study: Professional Association – EMEA - Retention
Background
This client is a professional Association, which inter alia arranges PI insurance for its 10,000+ individual members. They wanted to stop being reliant on the markets for the placement on PI cover for its members as despite being less risky than PI insurance for other professions, the premium charged was almost the same as those for riskier professions. As a result, they were exploring self-insurance solutions and wanted to set-up a captive. However, the EU solvency requirements applicable to any insurer wanting to write personal lines to EU residents, were far too high for an association with limited wealth.
Approach
A reinsurance cell captive was set up in White Rock which allowed the association to:
- “Test the waters” of self-insurance
- Benefit from the underwriting profit of the programme
- Over time, build up sufficient funds to capitalise a standalone insurance company.
Results
The results for the client are the experience of self insurance, increased control and management of the insurance spend and ultimately optimisation of their total cost of risk.