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Historically, insurers have not been generous in terms of reducing premium in exchange for higher levels of self-insurance.  There is no tangible incentive for universities to increase levels of retained risk and insurers continue to pay claims for relatively low values.  This means that premium has to be maintained at a level to meet these losses.


Currently, there is a wide variation in practice, with many institutions opting for low deductibles (typically 1,000 for property losses) while others have decided they can manage relatively large deductibles from revenue, up to six figures in some cases.


There are several options available to you, including:

      Increasing the level of deductible in a conventional insurance programme

      Not insuring at all

       Creating a Captive Insurance Company

      Renting a part of a Captive or creating a Protected Cell Company

We adopt a 4-stage approach:



Claims Analysis which includes:

      Collating all past claims and analysing data by year/type/cost

      Calculating average claims cost by year/type

      Assessing the impact of various individual and aggregate deductibles



Insurance Market Exercise

It is important to have a benchmark against which costing for retained losses and risk transfer can be measured. We will obtain indications of cost from current and other insurers.


Risk Retention Analysis

Complete an assessment of your latest Annual Financial Report to judge your capacity to retain risk and propose an appropriate loss tolerance limit.  This will be a conservative estimate of your ability to retain risk and we will compare and analyse against current levels of self-insurance.





      Consider the viability of a retained risk strategy and, if appropriate,  recommend a full Captive Feasibility Study

       Advise you on an insurance programme based on the results of the insurance market exercise

      Give an indication of likely capital requirements and PCC premium




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