Insurance Risk Management Advisory

• Total cost of risk analysis and benchmarking – Our experts conduct an independent, objective review of the current state and cost of the commercial insurance program and the associated claims profile. We provide benchmarking to ascertain opportunities, gaps, and redundancies. Our team provides tailored recommendations and advice to improve the risk profile.
• Property program health check – Firms need to be prepared to make their property program stand out. Our experts assess the health of the property statement of values (“SOV”) and provide tailored recommendations to improve the property program and data quality before going to underwriters.
• Cyber liability program review – We provide an independent, objective review of the cyber liability insurance program and associated insurable security profile. We identify opportunities and gaps in the current cyber liability insurance program and the steps necessary to achieve the same.
• Insurance program review and diagnostic – As an independent advisor, we take inventory of existing insurance policies, processes, and vendors, while evaluating macro-insurance trends and industry-specific considerations to ensure each firm has best-in-class risk management and claims processes, leading terms and conditions, right-sized program structures, and an efficient cost basis.

Our experts regularly provide customized risk management advisory to firms to improve the efficacy and efficiency of risk profiles. Our professionals have proven experience working with global management and operations to resolve coverage, program, and cost concerns.

• Strategic program right-sizing – We provide organizations with unbiased recommendations for optimized program structures that balance risk retention and transfer, while fully considering the firm’s unique risk tolerance and strategic initiatives.
• Insurance renewal and advisory – We provide strategic program guidance, client support, and broker oversight throughout the renewal and placement process. Our experts validate and scrub renewal data and analyze renewal terms, coverage, and pricing to provide client confidence in the final placement decision.
• Interim and outsourced risk management – Our role includes leading all aspects of corporate insurance risk management to provide day-to-day strategic and administrative risk management needs of a global organization. We offer turn-key interim risk management services.

Finding and engaging the right partners is paramount to developing a highly-effective risk management profile. Our team calls upon leading vendors to develop risk management strategy, execution and client service delivery. Our independence and vendor-agnostic approach, coupled with our market leverage, ensures that the right partners are involved at the right time to solve your most critical needs.

• Broker advisory, evaluation processes, and implementation – We drive broker participation, analysis, and thought-leadership in competitive RFP processes to optimize go-forward program structures, markets, and the resultant total cost of risk, not just broker fees. Our team stays involved after the broker is selected to drive the implementation process and ensure that the broker onboarding, client service delivery, and renewal expectations are met.
• Third Party Administrator (“TPA”) advisory, evaluation processes, and implementation - We drive TPA participation, analysis, and thought-leadership in competitive RFP processes to optimize go-forward claims handling and the resultant total cost of risk, not just claims handling fees. Our team stays involved after the TPA is selected to drive the implementation process and ensure that the TPA onboarding, client service delivery, and claims handling expectations are met.
• Risk Management Information System (“RMIS”) advisory, evaluation processes, and implementation - We drive RMIS provider participation, analysis, and thought-leadership in competitive review processes to optimize go-forward system requirements and operation, not just fees. Our team stays involved throughout the RMIS implementation process to ensure that system roll-out and functionality are complete.

We work alongside buyers and sellers to form a sustainable risk foundation for operational success from Day 1. We have a long history of assisting M&A transactions of all sizes, complexity, and geography. Our services span the full M&A lifecycle:

• Buy Side: Insurance due diligence – Insurance risk management is a crucial aspect of the M&A due diligence process. We identify any gaps or red flags in the target’s insurance program, how to rectify any deficiencies, and any post-closing synergies and milestones to achieve them. We also consider contractual insurance requirements to ensure the buyer’s coverage is compliant with the go-forward obligations. Our team identifies significant claims, exposures, or trends and evaluates the potential for future development which could impact deal dynamics or profitability.
• Buy Side: Integration – We leverage both the target’s and buyer’s insurance programs to prepare the most efficient post-close insurance program possible. Our experts coordinate coverage for the combined entity, while closing any gaps in coverage caused by the target’s operations. By streamlining coverage and eliminating redundancies, we achieve significant cost savings while ensuring comprehensive coverage.
• Buy Side: Carveout and standup – Our team of insurance experts understand the complexity and challenges of carveout transactions. We evaluate the target’s risk profile, create the go-forward program recommendation including coverages, limits, deductibles, and pricing. Then we select appropriate insurance vendors (e.g. brokers, TPA’s, RMIS) to ensure cost-effective and comprehensive coverage are commensurate with close.
• Sell Side: Carveout transactions – In preparation of a sell side carveout transaction, we prepare the necessary data room materials including exposures, premium allocations, claims, and carveout-specific policies. Our experts also right-size the seller’s post-close risk profile to remove divested claims and exposures associated with the divested operations ensuring carriers understand the new, go-forward risk profile.
• IPO readiness - We prepare companies for the complexities of a go-public transaction providing strategic advisory on the public D&O insurance placement. We shape the D&O underwriting story to ensure a compelling narrative is presented to insurance underwriters. Our comprehensive insurance and risk management services for IPO readiness ensure companies have the necessary coverage in place to properly protect directors and officers, but without overbuying or overspending on the initial D&O placement
• Post-Close risk management onboarding – Our team works closely with the buyer and target to develop a seamless integration plan into the buyer’s risk management profile. Our onboarding process ensures that all risk management procedures are available company wide. We assist in the dissemination of risk management process to newly integrated operations. We identify and capture any return premiums and warehouse the now acquired target’s insurance policies. Finally, we capture loss control and property engineering reports and current recommendation status in support of loss prevention and mitigation efforts.
• Reps and warranties insurance - We prepare a report of insurance due diligence findings to summarize the results of our analysis and provide recommendations as to any go-forward changes to the insurance program. This report can be leveraged in the placement of the reps and warranties insurance program. Learn more.

Our team guide firms through the full captive lifecycle including:

Captive evaluation

• Captive decision advisory – We provide firms with unbiased captive recommendations for optimized program structures that balance risk retention and transfer, while fully considering the firm's unique risk appetite and tolerance and its strategic initiatives.
• Structural selection services – We conduct an independent, objective review of the current state and cost of the risk retention and transfer program and associated claims profile. We provide guidance and benchmarking details to ascertain the optimal captive structure while mitigating opportunities, gaps, redundancies, and challenges in the current risk transfer profile.

Captive design

Our team provides customized captive advisory to companies to improve the efficacy and efficiency of an organization’s risk profile. Our professionals have experience working with firms to design strategic captive programs.

• Vendor and domicile selection advisory – Our unbiased approach coupled with our market leverage, ensures that the right captive vendors are involved at the right time to solve your most critical captive needs.
• Captive formation support services – We provide strategic guidance, support, and oversight of the captive manager throughout the captive design and formation process. Ensuring that final captive formation aligns with identified risk management objections and program deployment.
• Strategic funding advisory – Our role includes support throughout the captive funding process to provide oversight and guidance through the initial funding structure design and process.
• Captive integration and leverage analysis – We work with the company’s captive vendors to ensure that the captive dovetails and enhances the structure and performance of the commercial insurance program, while fully leveraging the inherent benefits of a captive program.

Strategic deployment

Finding and implementing ongoing opportunities with a captive program is paramount to developing a world-class risk management profile. Our team develops and implements captive strategies to maximize the captive structure and tools.

• Retained capital leverage – We support firms in their ability to identify and leverage the retained captive capital to support ongoing risk management and operational imperatives throughout the organization.
• 1st and 3rd party risk evaluation – Our team identifies and evaluates opportunities to leverage the captive program for both first and third party coverage programs, ensuring that captives are fully deployed to a firm’s global operations.
• Private equity and portfolio-wide programs – We identify and create PE and portfolio-wide captive solutions customized to the needs of the portfolio companies that are cost-efficient and provide robust coverage terms.
• M&A due diligence, integration and separation – Our team reviews, facilitates, and optimizes the captive tools and functions for acquired and divested companies.

Captive winddown

We partner with companies to navigate the captive exit process from planning to execution by recovering trapped capital, collateral and escrow amounts. We support the transfer of legacy liabilities and the reintegration into the commercial insurance marketplace.

• Casualty claims strategies - Our team helps companies navigate the claims process through reporting and notification, damage assessment and validation, to ultimate settlement and recovery.
• Collateral solutions - We manage and right-size complex casualty claims profiles and the associated collateral obligations. Our experts drive the claims performance process, pushing claims vendors to optimize reserves, cash flow, and resultant collateral requirements, structure, and amounts.