Analysing data key for captive owners in hard market
The hardening market is highlighting the need for insureds to take more ownership of their data when considering increasing retentions within their captive.
Taking a more pro-active approach in collecting, managing and analysing relevant data will give captive owners an advantage in the commercial market, according to Angus Rhodes (pictured) and David Thomas, of Ventiv Technology.
Speaking on GCP #36 Thomas, a Director at Ventiv Technology, said the hardening market was highlighting the need for insureds to take more ownership of their data when considering increasing retentions within their captive.
“The market conditions have created the need and opportunity to carefully re-evaluate their risk appetite – both the level of risk they will write to offset the lack of capacity, as well as the level of risk they will cede to reinsurers,” he said.
“Clearly if the reinsurance costs are being driven upwards then the captive may want to consider greater retentions and it is the decisions around retentions that requires appropriate due diligence and should be driven by the available data and the ability to interpret it.”
Rhodes said many of the data management and analytics tools had previously out of reach for standalone captives in the past, but that they are much more accessible now as the technology has progressed.
“Data is the key to all of this,” Rhodes explained. “Before you can get some of the more advance insights you really need to get control and ownership of your data. The tools that are available now will help you deliver that – whether its consolidating renewal data, generating documentation, or consolidating data from insurers and TPAs. The tools will help you draw that data in.”