Defining and Modeling Adverse Scenarios for Captive Insurance

Michelle Bradley, ACAS, MAAA, ARM, CERA, CCIS, Consulting Actuary and Enoch Starnes, ACI, Captive and Complex Risk Consultant

As part of SIGMA’s continuing efforts to provide actuarial expertise and guidance to the captive industry, we recently wrote an article for Captive International, a UK-based publication, discussing adverse loss scenario modeling. In it, Michelle Bradley and Enoch Starnes discuss the various circumstances that might impact the adverse loss scenario within a feasibility study, as well as ways to address them. The feasibility study is a critical component of captive formation, and properly handling the actuarial analytics found within can help ensure that the captive’s key decision-makers are supplied with the most accurate and reasonable information possible. You can view the complete article on Captive International’s website here.

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