Insurance Risk & Recovery Services

Insurance Risk Management involves managing the volatility of commercial insurance premiums and achieving a cost-efficient insurance strategy. It is vital for effective risk management; especially as rising insurance costs reflect increasing risks. This service focuses on addressing the total cost of risk by deploying resilience and insurance strategies in tandem. 

BDO helps by conducting assessments and designing a holistic insurance program to ensure risk blind spots are covered. Analytics are used to consider historical industry and company-specific precedents when establishing risk tolerance and insurance needs.  

BDO also uses insurance risk optimization tools to streamline coverage and reallocate funds back into the business, ensuring proper coverage. Additionally, we assess vendors and conduct third-party risk transfer to offset certain exposures, rectify issues such as late reporting, improper reserving, and failure to identify problem claims early in the process. 

A captive is an insurance subsidiary of a non-insurance parent and exists to serve the risk management needs of the parent and/or to support the core business goals of the parent, rather than for its own profitability.  

Another way to see a captive is as a risk financing vehicle for retaining corporate insurance risks. Nearly any risk that is self-insured, carries a large deductible/retention, is commercially unavailable, or cost prohibitive can be a risk insured by a captive.