Enoch Starnes and Michelle Bradley recently authored an article for Captive International titled “Evaluating Captive Retention Structures in a Hard Market.” In it, they discuss the analytics needed to support retention selection and program structure development. Also included is a high-level examination of various total cost of risk (TCOR) metrics. While the article primarily focuses on producing these analytics for captives, the content should be useful for any company selecting self-insurance or large deductible retention levels.
As a reminder, our prior entry to the Risk Management Blog focused on SIGMA’s new captive brochure. If you or your client is new to the formation process, this brochure will highlight the key issues to be aware of and summarize the analytics needed. The retention analysis featured in the above article is a key part of the analytical phase of captive formation.
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