Can Captives insure the Uninsurable ?
That is the motto of the next World Captive Forum 2017 to be held in Florida.
Also Captive insurers need solutions to provide insurance protection for :
* Natural Disasters
* Climate change
* One out of many classes of Cyber risks
* Impact of a Meteor
* War risks / civil commotions
* Loss of production capacity following loss of electric power
* Loss of crop
* Earth quakes following coal, gas, oil or salt mining
* Explosion of devices left behind after a war
* Blackmail or ransom after kidnapping
I started my work in the insurance industry in 1969 and sold my quite sized business in 2007. As it has been my business eversince to insure the Uninsurable, I dare to state that I have gathered quite some expertise in this field.
The background of my IT expertise
In 1978 No IT system would comply with my requirements. So I had to write my own software, using a system made by Datapoint Texas, with a 120 MB hard disk system that was told to be the largest possible in those days.
It was a DOS-related system.
Since 2007 I have personally invested millions of dollars to prepare the software for use on the internet by other insurers, brokers and Captives.
My relation with insurers
One of the main problems I have had to tackle was : how to provide the data, suitable to inform the partner insurers and re-insurers en gross or in detail.
Originally, most of my capacity was provided by Lloyd’s Underwriters.
An impressive number of underwriters at Lloyd’s and in Europe still will remember my reputation in this field.
About external expertise
Many insurance products could suit a Captive organization much better, if external expertise is inserted.
Important question is : how to manage the financial streams between parties in a transparent way ?
About transparency
* for the cliënts insured, part of a multinational organization,
* for the brokers involved,
* for accountants and
* for authorities of any kind.
So i designe my software as a 100 % transparent tool, resulting in no leaking of monies to other parties, unless specifically agreed and signed for.
Space for creative initiatives
Another problem I have had to solve, was that the software in most cases has been designed to service standard insurance products.
This resulting into :
1) No possibility to implement a number of insurers taking part in certain parts of the cover
provided.
2) No possibility to exclude a number of insurers from certain parts of the cover provided.
3) No possibility to participate with other shares in certain parts of the cover provided.
4) No possibility to grant an underwriting fee to the party who is in charge of the claims
handling.
5) No possibility to grant different commissions / brokerage for certain parts of the cover
provided.
6) No possibility to charge special fees, linked to certain parts of the cover provided.
7) No possibility to change amounts insured as appropriate.
8) No possibility to use the same product for territories that have different legislation.
9) No individual account current that can be disclosed by any party involved or
participating.
10) No risk management system.
11) No underwriting system that can be finetuned by ordinary people like insurers or their
staff.
12) If a limit table is available, other systems cannot combine this with limit tables of other insurers participants or reinsurers.
13) No possibility to administer SPECIAL LIMITS agreed by re-insurers.
14) And no possibility to follow the currency of the local country for the same product.
Of course the software I designed, provides all of these features.
New software named REALXS
And now this software is also available for users who can choose the language or dialect.
This includes that cliënts can receive documents in English or if chosen : a local language.
Brokers can receive the same documents in the language of their choice.
The same is for the insurers worldwide. This software is unique and has been used by a number of try-out clients.
Launching in the UK
Recently our software was discovered by a team of IT specialists who are setting up an insurance administration centre in the UK, to suit the wishes of Captive insurers and other insurers in the UK.
This month, our software is demonstrated to a group of insurers who want to grant a full power of attorney to a Dutch insurance agent who has set up a product that will be sold on the internet to shopkeepers and small businesses.
That product includes the insurance of :
– Property
– Inventory
– Goods in stock
– Goods transported
– Loss of profit / Consequential loss
– Permanent impairment of staff, following an accident or an illness
– Life insurance
– Public liability
– Product liability
– Professional liability
– A number of Cyber crime insurance products
– Etc. etc.
Services to the Captive insurance industry
The system of course is ideal to suit Multinational corporations who want to offer the best of insurance products to their subsidiaries, but who also want to be informed about the actual need to buy these products.
A lot of money is spend just to be sure that sufficient cover is available.
This system prevents lots of money to be spent for no good reason.
Taylor made to suit local requirements
So in my view the locals can select the insurance products they need, they can choose the size of the cover wished and The Captive company still can monitor exactly where their choices need to be clarified.
Year of account administration
And the insurers can see exactly the type of cover applicable on a year of account basis
Claimshandling
The system includes a claims handling software system, accounts, documents distribution system and can be used by a number of Captives simultaneously. In that case the system also allows Captives to participate in the business of other Captives.
History of my involvement with IT
I started writing software in 1978, using a system made by Datapoint Texas, a 120 MB hard disk system that was told to be the largest possible in those days.
It was a DOS-related system.
Over the past 10 years I have personally invested over millions of dollars to prepare the software for use on the internet.
No license costs for Micro insurance products
Insurers who sell Micro insurance products in Africa, India, Indonesia etc. providing insurance services to the public that has no experience with the idea of insurance / spreading of risks amoungst many can use our software free of costs.
So we do not charge any fee for the use of our systems for Micro Insurance products.
By doing so, we hope to assist in reducing the costs of micro insurance.
