Captive Services - AXA Corporate Solutions

Financial Solutions
Captive Services
Dedicated team
Pecuniary Losses: Marine Charbonnier
Traditional Coverage: Underwriter
►Engineering & captive budget
Agreements: Patrick Padol
►Writing and issue of the reinsurance
Accounting: Sylvain Eyraud
►Follow-up of technical & accounting flows
(premiums /claims)
Captive coordination
Stéphane Tinturier
Claims
International Coordination:
Geneviève Hiriart-Urruty
Transport : Luc Gerits
P&C : Isabelle Vayer
►Follow-up & claims paiement
International programs
Property/Transport/Construction: Sébastien Blum
Liability /Motor /Aviation /D&O : Catherine Cognet
►Issue of Master Policy/ Local policies
Key figures 2014
Network split
7%
1 600 programs
Partners Network
9 000 local policies
AXA CS & AXA
Network
62 800 claims
93%
Programs per line of business
Local policies per geographical area
2%
23%
Construction
10%
4%
Cargo
10%
Financial Lines
1%
7%
Africa
8%
25%
Liability
6%
3%
Multi line P&C
Dommage
47%
200 captives fronted by AXA CS, all Lines of Business
Euros 400 millions ceded premium, 20% of our turnover
axa-corporatesolutions.com
Oceania
Europe
Motor
54%
Asia
North America
South America
Captives Services En, 04/2015 - AXA Corporate Solutions - Service Communication Externe - Photos : @ photononstop - imp. reprographie
Reinsurance
Underwriting
Captive Services
A tailor-made offer for
International Programs and
Pecuniary Losses Policies
Advice and tailor-made scheme
AXA Corporate Solutions’
dedicated offer for Captives applies
to conventional international
programs and to complementary
policies covering uninsurable risks.
Technical and financial secured flows
From the group and its Captive’s objectives and constraints, AXA
Corporate Solutions’ services include:
advice on different levels of Captive’s retention and conditions,
tailor-made policies,
solutions of financing “ad hoc” or reinsured by the Captive,
in addition of underwritten traditional policies and for some
uninsurable guarantees:
•coverage of financial impacts,
•diversification of Captive exposures,
•exposure of captive surplus
With AXA Corporate Solutions’
dedicated experts and structured
processes, Captives benefit from
custom-designed consulting,
compliance and technical
information and financial
secured flows.
competitive fronting and security conditions.
, the innovative way of communicating
for AXA Corporate Solutions
shared with AXA Corporate Solutions’ network partners,
a common workflow, secured and efficient:
•to deploy local policies worldwide,
•to collect local data such as: invoicing dates, local
policies issuance dates, payment dates, claims
technical data
•to provide a full reporting: policies, premiums, claims, …
Standardized instructions to:
speed up local policies issuance,
secure data provided to local partners,
secure local covers.
International programs
Pecuniary Losses Policies
A Captive is an efficient Risk Management tool:
• lower and stabilized premiums,
• mutualization of retention and smaller deductibles for operating
units,
• greater control over claims,
Businesses have risks that are not insured through
conventional coverage because:
• unavailable,
• unaffordable,
• unconsidered or not properly identified.
EXCLUSIONS
LOW SUB-LIMITS
HIGH DEDUCTIBLES
NO GUARANTEES
PREMIUM PROHIBITIVE
… combined to a risk management policy.
Captive’s policies can be custom-designed to meet the particular needs of the insured.
Captive
Subsidiary
100 %
CAUSES
TYPES OF RISKS
FINANCIAL IMPACTS
Reinsurance agreement
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AXA CS
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Master Policy Incl.
FOS & DIC / DIL
Parent
Company
Local Policy
Country A
Subsidiary
EU
Subsidiary
Contractual and regulated framework
Compliance with regulations :
insurance operations : risk qualification, transfer, premium / risk compliance
local specificities: retention, mandatory reinsurance or pricing, “cash before cover”
countries, …
tax compliance: insurance or reinsurance taxes (FOS or non FOS), …
money laundering, financing of terrorism and international sanctions, …
leveraging with our international network of recognized experts
• over 100 countries,
• in-depth knowledge and regular follow-up of market practices and regulations
evolutions on each insurance market,
• annual rating of our network members based on experience, financial results
and country risk.
Local Policy
Country B
Local Policy
Country C



Subsidiary
Subsidiary
Political Risks
Exceptional climatic
situation
Natural events
Change in legislations and
regulation
Pandemic / epidemic known
or threat
Strike, lockout
Mudslinging…
Master policy:
• sur mesure et émise avant la date d’effet.
Local policies:
• instructions sent to the network partners before inception,
• policies issued on “best local standards”,
• policy reinsurance up to 100% by AXA Corporate Solutions (except
mandatory local retentions).
Reinsurance cover note explaining the rights and duties between AXA
Corporate Solutions and the Captive:
• based on standard document to be adapted to each Captive,
• with financial securities to cover technical outstanding and credit
risk (Solvency II),
• issued and signed before inception date.
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






Non damage business
interruption
Loss of key suppliers
Lack of raw materials
Denial of access
Loss of key customers
Change of components
Loss of reputation
Data theft
Product recall…

Loss of turnover

Increase of operating
costs and/or
additional exceptional
costs

Impairment of assets
A claims management added value
Organisation adapted to custom-designed partnership:
Efficiency
 Dedicated contacts
 International claims
coordination with
local support
 Claim management
agreed between AXA
CS and the captive
 Claim feedbacks on
wordings…
Profitability
Quality
 Technical and legal
 Regular claims review
 Management of
 “Fast track”
 Quality on reserving
 A technical reporting
support for major
losses
recoveries
adapted to client
needs
management for
frequency claims
for payments and
outstandings
 Aggregate follow up
for the captive