A captive insurance company is simply a commercial insurance company that has been formed by one or more parent companies to meet their needs. The main purpose of this captive arrangement is usually to ensure the parent's risks and assist with other risk management. Captives are growing in popularity because they can offer parent companies several advantages. These advantages can include an increased ability to control costs and design their own coverage.
However, these companies also have to operate both like any other commercial insurer and subsidiary of a parent company. That means that the captive companies have to fulfill these risk requirements for a captive insurance company:
What's critical to a captive's ability to fulfill its requirements? Both captives and their parent companies thrive with proper data management. At the same time, improper management of data prevents captives from meeting their obligations. Proper data management ensures that everybody involved with the process can utilize their quality information in a timely manner. It also should save time because validation, formatting, and auditing data should be enhanced with automated processes.
These are some ways that risk management information technology can help companies fulfill their risk management requirements:
Today's captive insurance companies have to manage data very well. Not only do they need accurate and timely information, they must also have the ability to respond quickly to changing requirements from the government, their parent company, or from other third parties. A risk management information system, or RMIS, that consolidates accurate data across an entire enterprise can pay for itself in multiple ways. Data will be captured in one source where it can be reported upon with ease. In addition, these systems can send out alerts to responsible parties when some matter needs attention.
Please visit The Resource Library to download your free copy of "The Captive Insurance Company's Guide." This guide will demonstrate how captive managers can use data to their advantage instead of wasting time trying to gather and correct it. The learn how our all-in-one risk management saas solution can become your company's competitive advantage.