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Case study

Using Risk Finance Optimisation to better leverage a transportation captive

The Challenge

A transportation services client specialising in logistics was anticipating a challenging auto liability renewal.   The client was looking for analytical support in determining their preferred insurance structures.  Marsh’s client team used Blue[i] Risk Finance Optimisation Analytics to help the client determine how to leverage their captive efficiently to finance the risk, given capacity and pricing constraints of the insurance market.  With Blue[i] RFO analytics, the team provided the client with a data decision framework for their cost of risk.

The Solution

Using the Blue[i] RFO Analytics, the team created a baseline cost of risk and identified areas where the client could see cost pressure.  Blue[i] RFO Analytics identified layers of insurance that could be more efficiently retained versus transferred, leveraging the client’s captive balance sheet.

The Results

Blue[i] RFO Analytics provided the support the client needed to discuss with management.  The client was able to avoid material fixed premium increases without needing additional capital for the captive while also reducing total cost of risk.

Blue[i] Analytics: Insights that help you turn risk into possibility.

Marsh’s Blue[i] Risk Finance Optimisation Analytics is our digital solution that provides real time and actionable insights to help you make informed decisions across your risk portfolio. With loss projections tailored to your unique risk profile, we can help you adjust your strategies and assess your risk appetite at both the portfolio and product line level. Assessing your risk appetite, exposure to insurable risk, cost of capital, and cost of insurance allows you to determine how different program options would impact your organisation. You get the comprehensive answers you need, when you need them, and view analytics tools and modelling in real time.

A modern approach to risk management

Successfully navigating the risk landscape requires a commitment to take on the challenges of our time, reimagining risk and resilience. Our approach provides you with sharp, actionable insight for confident risk management decision-making, powered by data intelligence.

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