Press Release - AUGUST 11, 2017
A.M. BestTV: Captives, Known for Their Uniqueness, Find Ways to Benchmark Themselves
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 11, 2017
Benchmarking was the main theme of the discussion. Each panelist had a different perspective, based on his company’s business.
“As a rating agency, benchmarking is a big part of A.M. Best, whether it is a rating of a captive, a standard automobile carrier, a workers’ compensation writer or a reinsurer,” said John Andre, managing director, A.M. Best. “A.M. Best issues credit ratings in 90-plus countries now, totaling approximately 3,400 ratings. At the end of the day, they all bear risk and all have a different story. A huge part of our rating committee for any kind of company is going to be peer analysis.”
Andrew Baillie, vice president, AES Global Insurance Co., spoke from the captive owner’s viewpoint.
“As a captive owner and an insurance buyer for AES, our view is trying to find equity in what we are doing. That means representing the stakeholders by making sure that the pricing for the cover that we buy is fair and reasonable in the market and being able to ensure that the terms and conditions attached to that are the same.”
Peter Mullen, chief executive officer, Aon Captive and Insurance Management, said potential clients demand much more of brokers these days, and benchmarking helps to map out a client’s overall risk profile.
“From a broker’s perspective, we look at benchmarking as part of our overall data and analytics function, since we use it to help assess and quantify risk, “ said Peter Mullen, chief executive officer, Aon Captive and Insurance Management. “Overall, what is does is lead to a better decisions around capital.”
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