A recipe for success

Success does not occur in a vacuum. For us at Guy Carpenter, the recipe is simple: we are a people business.

Our colleagues and our clients propel us. They push us to help manage an expanding list of risk management challenges, and to do that our team constantly re-evaluates our resources and capabilities to determine how we can deliver the right solutions. This motivates our team to strive to continually improve services and performance in order to meet the complex needs and challenging issues facing our clients.

Simultaneously, our team must actively “look around the corner” so that we are investing in the next round of resources needed to address emerging issues.

Our approach has enabled us to sustain success and we are grateful for the recognition from our captive clients.

Robust opportunities

Guy Carpenter is well-positioned to provide the analytical and strategic advice needed to help our clients develop and implement risk management strategies to manage exposures from all past and present threats to capital.

In the wake of ongoing inflation, hardening re/insurance market conditions and greater macroeconomic uncertainty, we continue to see robust opportunities for captive insurers to increase the utilisation of their captives by seeking reinsurance solutions that will manage volatility and protect the balance sheet.

These capital management strategies provide captive owners with the potential to manage both prospective and retroactive exposures.

Proactively managing, or disposing of, legacy reserves through adverse development covers or novations can be a tool to free up trapped capital. This in turn allows captive owners to redeploy it to support the expansion of risk-taking measures, which is particularly important as we experience a hardening property market.

A brief word on Cayman

The Cayman Islands Monetary Authority’s long-term approach to supporting and managing the captive business provides companies with stability, which leads them to select the Cayman Islands as their domicile of choice.

In addition to the steady and consistent regulatory framework within which a captive can thrive, Cayman’s deep pool of local experts and service providers ensures that captives obtain professional advice and services.

This unique combination has enabled Cayman to remain a healthy and growing domicile.

An eye on the future

We have seen consecutive years of historic growth in the sector and continue to believe there is ample opportunity for sustained growth as organisations seek more efficient ways to finance and transfer risk.

The growth will be driven from several key areas including: new captive formations, increasing use of cell captives to insure non-traditional or emerging risks, growing membership of group captives as middle-market businesses look for smoother, more predictable pricing, and the expansion of risk-taking from existing owners.

All of these motivations are being accelerated by the hardening property market post-Hurricane Ian and by the expanding roster of reinsurance solutions available to captive owners.

And, for the next generation of talent, here’s some advice: be curious, ask questions, be open to new challenges that make you uncomfortable, put in the work and be patient.

In a world of immediate gratification, some are constantly looking for the next opportunity, for the next rung of the ladder to climb. As a result, they sometimes forget to focus on being present in the moment, which hinders the delivery of superior results “right now”.

Each Guy Carpenter client project or engagement is iterative and amplifies our capabilities. It is this consistent approach that enables long-term growth and success.

If you are consistently performing at a high level and paying attention to the details, opportunities will follow that you will find both rewarding and fulfilling.