A risk retention analysis can be helpful for determining the optimal level of risk for your organization, whether you are self-insured, a captive, or a risk retention group. We will help you assess the advantages and disadvantages of different levels of risk retention, such as the excess premium savings a higher retention level may bring.
Three items to consider in a risk retention analysis are:
- Appetite for Risk – Each client’s appetite will be different. We will help determine your appetite for risk based on your financial stability, profitability, and internal goals.
- Insurance Market – What pricing is available in the insurance/reinsurance market for the risks you want to transfer?
- Regulatory Constraints – There may be certain restrictions to consider based on the insured’s financial condition – surplus level, expense ratio, etc.