How Can Flight Plan 365 Help Your Business Succeed in the Captive Underwriting Process?

The right way to prepare for an underwriting process is to assess your risk profile and how well you manage risk. A risk management program like Flight Plan 365 answers all the questions asked before your entry into a captive.

In fact, it organizes the captive underwriting checkpoints into four phases. The four phases have been designed in a way to answer the questions raised by an underwriter about why your business should be in a captive, and how you will be profitable once inside the captive. The first step is the test run that assesses the situation to make you eligible for captive entry - also known as the audit.

Profitability after entry into a captive is key. While we may say that Flight Plan 365 can bring great value to your captive entry and captive profitability, it does not mean it has to work out exactly that way, each time. In order to see success, there are certain things that need to be in place. Let’s see how this plays out before and after your business enters a captive.

WHAT HAPPENS BEFORE AND AFTER YOUR BUSINESS ENTERS A CAPTIVE?

When you first consider captives, the proforma looks at how far you have come.

For your business to gain entry, a captive underwriter will question how far you can go.

And so, to enter a captive, your business would typically have to look at a crucial thing that is often ignored: the management of risk.

If you are considering a captive, things start to look a little different. You are now thinking of managing risks and improving your risk profile. This will reflect in how you answer the questions typically asked by a captive underwriter.

How does Flight Plan 365 help an underwriter see you as a profitable member?

The underwriting process will uncover these things about your business:

1. Your risks and loss scenarios.
2. How have you managed them?
3. That is your risk profile.
4. And where there is a risk profile, there is a chance for risk profile improvement.
5. What are you doing to improve your risk profile?

Flight Plan 365 will help you answer these questions, before and after you enter a captive by:

• Identifying risks that keep you up at night, even the ones you can’t see.
• Start building a system that increases the returns on investment in your captive by reducing risk.
• Creating a proactive claims management system that has the adjustor working for you and stop overpaying on claims.
• Working with a risk advisor to conduct, monitor and constantly update the risk management process.
• Flight Plan 365 presents a long-term strategy that will be set in motion. The steering wheel will be in your able hands while the risk management program works as your navigation system and co-pilot.

HOW CAN YOU BE RISK INTELLIGENT LIKE A FORTUNE 500 COMPANY?

Here’s how a quantifiable assessment process like Flight Plan 365 can help you mirror the risk management style of a Fortune 500 company:

1. You get a long-term strategy much like a Fortune 500 company that does not buy insurance from an external source.
2. Your business gets to boost its risk management capabilities with a risk advisor studying every area that claims can potentially come from, rather than a dedicated team that Fortune 500 companies have in place.
3. What follows is a full-circle process of strategy development, implementation, and monitoring as well as updates and adjustments.
4. The financial bottom line often reflects more mileage in terms of productivity and safe operations, without the cost that a Fortune 500 company typically pays.

Flight Plan 365 works like a risk management team in a Fortune 500 company to give you a baseline, displaying where the company is on anything from safety manuals to procedures and even claims history - and where it can go. The program’s diagnostic and consultative steps are highly beneficial for a business looking to match its insurance costs with profitability.

DO YOU NEED FLIGHT PLAN 365?

Ask yourself these questions, in this exact order:

• Has the proforma shown how profitable you are to the insurance industry, and how that profitability can be your own?
• Do you need to enter a captive?
• To do that, do you want a front-to-back, top to bottom, inside-out, cost-effective solution that mirrors a Fortune 500 risk management program?

If the answer to these questions is Yes, then you probably have many questions about Flight Plan 365.

An often asked question is: how does Flight Plan 365 work? Flight Plan 365’s inner workings have been explained in detail, in this next article.