MACRA will enable captive owners to apply industry ratios of 11 sectors against captives’ financial results.
Marsh has launched a product that allows captive owners to benchmark the performance of their captives against the rest of the industry using the most comprehensive set of data available.
Called the Marsh Accepted Captive Ratio Analysis (MACRA), it will enable captive owners to apply industry ratios of 11 sectors against captives’ financial results. It will benchmark them based on either age of the captive, the industry group or the overall ratios. It will display the results through a tabulated format, a graphical format and provide specific commentary on the results.
Nick Marshall, a managing consultant in Marsh’s captive consulting group, said: “Captive vehicles have become an integral part of the risk financing strategy for companies which take a proactive approach to managing risk. This has remained true during a period of prolonged market softness, belying the theory that captives are largely formed and maintained as a hedge against hardening insurance rates.
“As companies use captives as part of an integrated risk management programme, it is important for them to undertake a periodical review of their financial performance. Tapping Marsh’s unrivalled database of captive information, companies can use MACRA to independently benchmark the performance of an existing captive against its peer group to ensure it meets the company’s risk management objectives.”