• Adequacy of Current Insurance Programme
• Risk exposure
• Claims profile - such will dictate changes in levels of underlying deductibles, captive retention & type & cost of reinsurance programme

2. Background to Captives

3. Operational Issues

• Reinsurance Basis
• Implementation Proposals
• Management Services that will be provided by the Management Company
• Development Potential

4. Examining financial elements including financial projections under a number of scenarios

• Premium Volume - Study will need to analyse relationship between premium volume available, the overall exposure at both individual & aggregate levels & the spread of risk within the portfolio, in order to ensure it is sufficient to meet both the costs of reinsurance & retained losses.
• Investment policy has to be determined bearing in mind need to maintain sufficient liquidity, to provide inflation protection, to make settlements in foreign currencies, & to optimise return from fund.
• Financial Projections for 3/5 Years
• Includes Best and Worst Case Scenario showing potential variability of results
• Shows advantages of compounding of investment income and earnings
• Shows how Reinsurance Programme limits the captive from large losses / events / accumulation of losses

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