Feasibility studies

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Milliman consultants combine property and casualty expertise, experience with hundreds of captives, and the highest standard of service to provide clients with high quality, meaningful feasibility studies.

We offer:

  • actuarial analysis of retained losses by layer and prospective funding requirements
  • strategic financial planning, financial modeling, and forecasting
  • review of capitalization levels
  • cost benefit analysis of captive

We have the insight only experience brings

We have worked with more than 250 captive insurance companies to estimate their ultimate losses and allocated loss adjustment expenses, capital requirements, and/or expected and adverse pro forma financials. Additionally, we work with state insurance departments to review captive applications. Having worked on both sides of the application process, we know exactly what state departments are looking for and take this into account when working on applications for our clients.

Our feasibility studies present all options

As an independent consultancy, we have no stake in promoting services or programs that do not fit our clients’ needs—we offer objective analysis of the feasibility of creating or expanding an insurance operation. We closely examine the potential liabilities of your organization and provide an honest assessment of how to best deal with your exposure.

For example, Milliman conducted a feasibility analysis for a manufacturing firm with $2 billion in annual sales and $10 million of premiums. We discovered that the potential savings in forming a captive insurance company would be about $200,000, a tiny fraction of the firm’s business. The company weighed the savings against the corresponding risks and decided against creating a captive. Although in this example the firm did not pursue a captive insurer, the client felt it made a confident decision because Milliman objectively analyzed and presented all of the options.