Challenge

A private U.S. university with approximately 5,000 students and over 60 academic programs created its captive in Bermuda in 2017 to insure coverage gaps in its general liability policy, its rare books, art and artifacts, and to add an animal mortality policy for its bomb dog. While the university’s captive was successful for years, the university had an interest in learning more about areas where its captive could assist with funding its broader insurance program. The university also wished to evaluate if Bermuda was its best choice of domicile or if another option would better serve its interests.

Solution

The university engaged the Hylan Global Captive Solutions team to evaluate the viability of assuming increased retentions and expanded coverages, both currently transferred and self-insured. The Hylant team performed a strategic review, analyzing potential additional coverages to expand the use of the captive. The review provided a quantitative and qualitative analysis of the current Bermuda domicile location to ensure it met captive objectives.

The Hylant Global Captive Solutions team also:

• Ensured maximum optimization of the university’s captive as a strategic enabler for its risk management needs and future growth intentions;
• Reduced the university’s total cost of risk by utilizing its wholly-owned insurance company;
• Determined where total cost efficiencies for the university could leverage the equity position of its captive; and
• Created a five-year strategic plan to expand the university’s captive