Adjure Global Limited is an experienced, regulated and professional insurance manager, based in Guernsey. We offer a range of managed insurance solutions for our clients from around the world. One of the important services we offer is the preparation of feasibility study to find the best insurance solution that is going to work for you?
A feasibility study is undertaken to determine whether a contemplated risk financing programme is feasible for a particular organisation or group of organisations.
A proposal for a captive feasibility study should always begin by stating its scope and purpose and will be needed;
Formation of an insurance entity puts the owner's capital at risk and needs to be managed well and with care. Shareholders of the entity need to understand why their capital should be used in this way and the potential return for their investment. If the legitimacy or wisdom of the risk financing programme is subsequently challenged, a well-written feasibility study can be invaluable in justifying the decision to form a self-insured programme.
The focus of the study will typically fall into the following categories: Control, Cost and Capacity
The captive business plan should show how the control-cost-capacity objectives can be achieved.
The basic requirements for a feasibility assessment are:
Two questions must always be addressed;
1. the selected method of projecting losses.
2. the premium rating methodology to be used in establishing premiums.
If the proposal makes sense, the feasibility study will recommend the formation of an entity and, if approved by the owner, the manager then begins the application process on behalf of the entity wishing to form the insurance entity.