Annual Conference Session Details

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25. Evaluating the Cost of Risk to Support Strategic Decisions for Captives (Intermediate)

Date: 2021-08-12T00:00:00-04:00 Time: 11:15 am-12:05 pm

Learning objectives:  After this session, attendees will be able to:

- Identify situations where the actuary can add value to the strategic decision-making process
- Cite what data and information is necessary for the actuary to complete their analysis
- Describe the impact that retaining and insuring risk through a captive could have on both a captive and the parent company

Level: Intermediate

Prerequisite: A basic understanding of captive insurance
Field of Study: Specialized Knowledge


Coordinator: Michelle D'Amico, Aon
Content Advisor: Mike Meehan, Milliman, Inc.
Moderator: Jay Curtis, Aon

In this session a captive owner, captive manager, and actuary will discuss ways in which the actuary may effectively measure and quantify the cost structure of the captive to help the captive owner make strategic decisions. Using a case study approach, the panel will share and discuss elements to consider when deciding what level of risk to retain, and whether to finance the risk through the captive. Join us to better understand market conditions, the cost of capital, taxes, variability of potential outcomes, and the reflection of the impact of program, operational, and exposure changes on projected cost of risk.



Scheduled Speakers:

Amy Angell, FCAS, MAAA

Amy is a Principal and Consulting Actuary with Milliman, Inc. She provides strategic consulting with respect to the formation, ongoing operation, and valuation of alternative risk financing vehicles, including include self-insurers, captive insurance companies, risk pools, and risk retention groups. Her areas of expertise include casualty insurance pricing and loss reserving, financial modeling and capital evaluation, and management reporting and benchmarking. Areas of insurance covered include workers’ compensation, general liability, products liability, auto liability, employment practices liability, asbestos liability, and professional liability. Amy also reviews captive and risk retention group applications for the Vermont Department of Financial Regulation. She is a Fellow of the Casualty Actuarial Society and a Member of the American Academy of Actuaries. She is also a Member of the Casualty Practice Council and the Council on Professionalism of the American Academy of Actuaries.

Jay E. Curtis

Jay is a member of the local Aon leadership team and the relationship manager for a number of captive clients domiciled throughout the U.S. He is responsible for overseeing the delivery of financial, regulatory compliance and advisory services to his portfolio of clients. Jay entered the captive insurance industry in 1994. Throughout his 27+ year career in the captive industry, he has played an integral role in all aspects of the formation, development, management and on-going advisory of a wide variety of captive insurance companies including; single parent captives, group captives, risk retention groups, and protected cell companies. Jay has experience in a variety of industries including but not limited to: healthcare, manufacturing, higher education institutions, construction, real estate, financial services, transportation and pharmaceuticals. Jay graduated from Champlain College with a bachelor’s degree in Accounting.

Rob Quast

Rob Quast is the Director of Insurance and Claims at The Kroger Co, and President of both Kroger captives. He is responsible for Kroger’s captive operations, insurance procurement, and oversees all property and casualty claims management. Prior to this role, Rob led Kroger’s Corporate Insurance department and worked in Kroger’s Finance department. He previously spent time in Ernst & Young’s assurance practice consulting for various fortune 500 companies, including a multi-national P&C company. Rob has his CPA and ARM certifications.