Insurance

KPMG in the Crown Dependencies helps insurers, reinsurers, captives, and brokers navigate complex challenges and seize opportunities in a rapidly evolving market. From regulatory pressures and digital disruption to shifting consumer expectations, we provide expert guidance to help you grow, innovate, and manage risk.

Our Services

Growth Strategies – Organic expansion, mergers & acquisitions, and corporate structure optimisation
De-risking – Outsourcing non-core technical processes
Remediation – Process and corporate management reviews
Technical Expertise – Internal audit, actuarial pricing, claims reserving, and solvency assessments
ESG Advisory – Transformation, reporting, and assurance to meet evolving stakeholder demands

Acturial
Captives
Insurance linked securities

Acturial

Motivations behind a captive will differ from company to company. In recent years, however, the primary consideration lies with using a captive as a strategic risk management tool. This allows the risk manager to focus on their job and not on insurance renewals.

Our abilities cover the full breadth of alternative risk financing – from evaluation and creation, ongoing operation, to restructuring or closure.

Reviewing and considering the requirements, benefits and drawbacks of potential and/or current jurisdiction(s).
Set a stable premium to give certainty in the budgeting process and protect against increases in the commercial insurance market.
Create a profit centre to share in underwriting profits.
Control claims data and use this to improve the operational efficiency of the company.
Access the reinsurance markets, providing additional and potentially lower cost capacity.

Captives

Motivations behind a captive will differ from company to company. In recent years, however, the primary consideration lies with using a captive as a strategic risk management tool. This allows the risk manager to focus on their job and not on insurance renewals.

Other benefits of a captive include, but are not limited to:

Insuring risks where there is limited capacity in the commercial insurance market
Setting a stable premium to give certainty in the budgeting process, and protect against increases in the commercial insurance market
Creating a profit centre to share in underwriting profits
Controlling claims data and using this to improve the company’s operational efficiency
Accessing the reinsurance markets, providing additional and potentially lower cost capacity

Our abilities cover the full breadth of alternative risk financing – from evaluation and creation, ongoing operation, to restructuring or closure.

Jurisdictional analysis

Reviewing and considering the requirements, benefits and drawbacks of potential and/or current jurisdiction(s) – not solely for the subsidiary risk vehicle(s) but also for the parent/shareholder, group companies, and stakeholders. Also comparing options and recommendations on location.
Insurance programme structuring

Risk assessment, allocation and ownership, including calculating the organisation’s total cost of risk – which includes both ‘insurable’ and ‘non-insurable’ risks. Design of coverage requirements and optimum structure to determine Op-Co retention, group retention, ART/captive participation, and risk transfer to (re)insurance and/or alternative vehicles.
Captive structuring

Bespoke evaluation of the benefits and drawbacks to the organisation of risk transfer. These include forming or continuing to utilise a captive incorporating both quantitative and qualitative aspects, a review of various types of risk financing available, considerations of regulatory, tax, and accounting impacts, and recommendations on further actions.
Operation recommendations

Manager and third party administrator selection/review, broker tender support, capital optimisation, utilisation and release, tax consulting, compliance and governance design and support, and actuarial analysis.
Restructuring support

Mergers and acquisition impact assessment and recommendations, risk financing vehicle restructuring, third party divestment solutions and liquidation services.

Insurance linked securities

Insurance-linked securities (ILS) have experienced rapid growth and interest from insurers and organisations looking to divest large or non-repeating risks. Insurers often look to offset natural catastrophe risks from their portfolio, while pension funds look to remove longevity risk. Other industries such as humanitarian, sporting, maritime or gaming have also all found uses for ILS vehicles. Interest and support from investors has also grown due to the returns being non-correlated with other pressures. This enables diversification within their portfolios.

Both Guernsey and the Isle of Man have dedicated legislation in place to allow these vehicles to be established and operational within a short timeframe, but only once the metrics and contractual details have all been set.

In response to this rapidly evolving market, KPMG in the Crown Dependencies benefits from a globally experienced team of structured finance and insurance professionals across our services lines, in the form an Insurance Linked Securities ("ILS") Group. Our multidisciplinary approach, methodology and ILS team have a proven track record of successfully working alongside clients on critical projects.