Communication, Media and Technology

Creating sustainable, strategic solutions.

The alternative insurance market, which includes captive insurance companies, has been rapidly expanding with many domiciles experiencing double-digit growth in 2021. It comes as no surprise that many companies today are facing a variety of challenges that may affect their bottom line.Companies that are financially sound, with sufficient insurance premium and a focus on risk management, and that are driven by an interest in financing assumed risk positions, are ideal candidates to consider a captive.The primary drivers for companies to evaluate the effectiveness of a captive insurance company as part of their enterprise risk management program include the following: Increased premiums and reduced capacity due to a hardening market Lack of control over risk management and claims handling Lack of availability of certain coverages in the traditional commercial insurance market Increased retentions What Is Captive Insurance?A captive insurance company is an entity formed to insure or reinsure the risks of its parent organization. With a long-term commitment to an alternative risk transfer vehicle, a captive serves as a formalized loss retention mechanism designed to enhance the parent company’s risk management program and/or enhance the corporate bottom line. While captives are highly regulated entities that are required to operate as insurance companies, they also offer flexibility that is not always available through the traditional commercial insurance markets.To ensure compliance and success, captives are licensed in a domicile, administered, and monitored by an infrastructure of controls, governance and expertise. Captive insurance provides organizations several advantages over traditional insurance, including: Increased flexibility to meet unique insurance needs or cover uninsurable exposures Improved risk management control Improved claims handling and control Diminished impact of market volatility Serve as facilitator of risk management programs Stabilization of operating cost and improved cash flow Access to investment income from unearned premiums Direct access to reinsurance markets The opportunity to develop a customized insurance program Expert Analysis and Exceptional ServiceWith more than 110 years of combined alternative risk transfer experience, NFP’s Risk and Insurance Strategy Collective (RISC) offers exceptional service and will assist clients in determining if a captive insurance company is right for them.No two captives are the same. By working closely with our clients, RISC will tailor a solution that is specific to the needs of the organization.Our team will structure, implement, operate and service their captive in the most cost-effective way possible. In the preliminary stages of captive engagement, our insurance and risk management experts work together with actuaries and financial stakeholders to compile and analyze all relevant data. We examine such factors as premium rates, reserve adequacy, capitalization requirements, participation requirements and source of funding for the proposed captive insurer. We offer services that span the entirety of the captive process: Pre-feasibility and evaluation of current and proposed programs Formal feasibility studies Captive formation and implementation Business plan development Ongoing captive management Strategic review of existing captive programs Flexible, Cost-Effective InsuranceAs the commercial market continues to harden and clients are being forced into placements that are not ideal, alternative risk solutions become more appealing. Implementing a captive insurance company not only allows for creative problem-solving but also the opportunity to accommodate rapidly changing coverage needs that exceed anything available commercially. RISC has the capabilities and forward thinking to create solutions that solve the unique problems our clients are facing. With guidance from our team, we will consult and develop alternative risk options with companies across all industries and locations to assure their enterprise risk management and risk financing objectives are met. Alternative risk solutions play a pivotal role within the insurance marketplace, and we develop state-of-the-art solutions to meet the present and future needs of our clients.

Creating sustainable, strategic solutions.

When addressing complex casualty situation, or developing any risk management solution, it’s not possible to wait and see how things turn out before taking action. Risks change, evolve, emerge, intensify and can appear with little warning. Because of this, crafting a complex casualty insurance policy is an ongoing process — a quarterly, monthly, weekly, even daily exercise that needs to form a part of your company genetics.Creating a Robust Complex Casualty PolicyRetained RiskRetained risk is controllable in many ways, and you can employ controls that manage retained risk costs. The process starts with a focused alignment of your internal metrics to achieve the desired outcome. Once we identify your business goals and the areas in which you’re retaining risks, we’ll work with you to align strategic goals with your overall risk plan and both insured and uninsured risks. From there, we can establish actuarial evaluations, consider alternative risk options, apply experience models and engage in other assessments as necessary to develop programs to better control strategically uninsured risk.Claims ManagementWe’ll work to align safety, loss control, actuarial and analytics and remove any silos between these areas, and collaborate with your internal teams to ensure the claims management process is forward-looking. In addition to supporting you during a claim, we will work to help your business proactively counter risk. Real time monitoring identifies issues before they have time to manifest into costly risks. We’ll employ technology to speed up the monitoring of claims management and response time and help your company anticipate losses. Close monitoring is one of the best solutions for keeping claim costs in check.Risk Transfer PremiumGetting the lowest possible cost and improving the risk management strategy depends on data. Our fact-based broking encourages the active participation of executive management in working with underwriters. From a safety and loss control perspective, a company in which direction and execution comes from the top makes underwriting decisions easy.So does pre-pricing risk. Determining a likely price helps companies determine their success level, so that when the underwriting price comes in, they can get an idea of how well their internal efforts align with what underwriters see.Simplifying the ComplicatedOur complex casualty specialists work with customers to deliver highly customized multi-line, multi-year insurance packages that include integrated risk and structured risk programs. Our team consists of skilled, interdisciplinary professionals with years of experience in casualty insurance, management liability, finance and law. Their number one priority is helping and protecting companies with difficult, hard-to-place risks.NFP’s programs are adaptable and incorporate elements of risk transfer and risk financing that meet the unique needs and log-term goals of our customers. In a world of constantly evolving risk, let us craft a solution that recognizes and evolves with that risk.

Peace of mind online and off.

Personal cyber insurance covers individuals for their personal online security risks and financial loss due to cybercrime.Cybercrimes and risks include: Online account takeover or compromise Expenses incurred or financial loss due to identity theft or social engineering scams SIM swapping incidents Smart home device-related incidents Ransomware Cyberbullying and others Home insurance and other standard policies do not provide adequate coverage for cybercrime. Fortunately, we offer various personal cyber solutions for individuals and their families, whether it be an endorsement of your home policy or a stand-alone policy. Not all policies are alike, and few provide coverage for all the risks you face today. As your insurance advisors, we can review your needs together and present you with solutions to protect you against cybercrime risk.Personal Cyber OptionsCyber risks can often feel beyond our control, but there are easy-to-obtain solutions to protect you and your family. In addition to the product range available through our partners, we have developed DigitalShield, a stand-alone personal cyber product to protect all aspects of your life. Our DigitalShield product is an online insurance policy that can be purchased in under five minutes.This policy covers financial losses and cybercrimes if you are a victim and need to make a claim, and also provides pro-active support to help you 24/7 with any question you have. It removes the guesswork, whether it be about your home network, your personal safety online, or if you need to review a suspicious call or email you received. This bonus cyber concierge service gives you and your family members access to reliable support to bring you peace of mind.Comparing OptionsWhether you choose a stand-alone policy like DigitalShield or want to learn more about add-ons to your current policy, when trying to deal with the unexpected, we're committed to providing a broad range of coverage to protect our clients, their families, homes and assets. DigitalShield provides the most comprehensive stand-alone policy available today, with options starting at $200 per year.If you’re not sure what coverages you should be looking for in a personal cyber policy, here’s a simple comparison chart to help.#whats-covered thead th:last-of-type { background-color: #1b2a39;}#whats-covered tbody th { font-weight: 500;}#whats-covered thead th:first-of-type { background-color: #005483;}#whats-covered .fa-xmark { color: #dc2d1c;}#whats-covered .fa-solid { font-size: 25px;} What's Covered ProtectionwithDigitalShield® ProtectionThroughOther Policies   Stand-alone policy Coverage for all family members of the household (at home and while traveling), unlimited devices, and all locations you own or rent worldwide included in one policy Access to a personal cyber expert 24/7 (available to assist you with cyber concerns and inquiries or to make a claim) Broad limits of coverage available (starting at $100,000 and up to $1 million) Identity theft and financial loss coverage (with no sublimit) Cybercrime coverage (including social engineering, phishing, online scams and SIM swap, with no sublimit) Cyberattacks coverage (with no sublimit) Cyberbullying and cyberstalking coverage Protection for your activity online (such as online accounts, online banking, shopping, social media) Ransomware and extortion coverage (with no sublimit) Smart devices and wearables coverage (including entertainment systems, appliances, home monitoring systems, cameras, thermostats and other connected home devices) Reputation management, well-being costs (psychologist and more), relocation costs, tutoring/school costs and legal service fees (covered when associated with a claim) For informational purposes only. This document does not amend, extend or alter coverage. Please refer to any actual policy(s) for specific terms, conditions, limitations and exclusions. An Ongoing CommitmentWhether you experience a suspicious call, a full-blown ransomware attack, a compromised online account, or other cyber or privacy event, our team is dedicated to working with you to provide proactive support and in the event of a claim, achieve a fast, equitable resolution to the most complex scenarios.To learn more about how you and your family can benefit from NFP’s cyber and technology leadership and solutions, contact us today.