Flight Plan 365© provides a strategic step approach to entering and profiting from captive insurance ownership, enabling the business owner to take charge of risk profile improvement as a consistent process.
Most small and mid-sized businesses don’t have an in-house team dedicated to studying and managing risk. If this is the case, then risk management can often end up taking a back seat to the day-to-day workings of the business. The need for risk management gets “swept under the rug” until the business owner is forced to take it out again, often at a much greater cost than would have occurred if it had been kept in sight from the beginning. In fact, most CFOs or business owners spend less than FIVE PERCENT of their time on insurance and risk management, and most of that occurs around the 90-day bidding cycle.
In comparison, cultivating a consistent culture of auditing and preempting risk leads to a consistently improved risk profile, which can mitigate the potential for claims even before they happen. At ReNu, we have poured our wealth of insight into—and experience with—captive insurance into making Flight Plan 365© the go-to platform for achieving this.
After you have read this article, you will have a good understanding of how each step of Flight Plan 365© works, and how all the steps can work together to make you a profitable captive owner.
The Fortune 500 method and Flight Plan 365©—similar design, similar outcome
Fortune 500 companies have in-house teams dedicated to a system of continual, year-round risk assessment to maintain risk preparedness and resiliency. Flight Plan 365© delivers the same qualitative outcome to small and mid-sized businesses at a lower cost.
Flight Plan 365© works on the premise that small and mid-sized businesses are even more vulnerable to risk than larger companies because they do not have the financial capacity to weather an uncovered claim. By delivering a qualitative, captive-oriented, future-forward approach to risk management, Flight Plan 365© serves as a diagnostic and consultative partner for risk profile improvement.
What are the steps of Flight Plan 365©?
Flight Plan 365© is a four-step program that maps directly to the captive underwriting checkpoints. The steps include:
- Step 1 (preflight): perform a risk audit to identify risks;
- Step 2 (takeoff): develop strategies to mitigate risk;
- Step 3 (enroute): implement programs to continue risk profile improvement; and
- Step 4 (destination): monitor and adjust for risk resilience
Step 1—Preflight: Perform a risk audit to identify risks
The Flight Plan 365© audit is a comprehensive view of the details of the risk management program that the business has already established. During this crucial initial phase, ReNu invests the time to understand every area of the business to identify all potential risks. The result is an understanding of what can go wrong, what it could cost the business if those risks become realities, and what could be saved if they were avoided.
Ultimately, the goal of the “preflight” step is to determine whether the business can show the captive underwriters that their approach to risk management makes them a good candidate for captive insurance ownership.
Step 2—Takeoff: Develop strategies for risk mitigation
Once the pre-flight risk audit is complete, Flight Plan 365© “takes off” to explore a spectrum of proven strategies to minimize or mitigate risk. In this step, strategies are developed that will protect business assets while also increasing the profitability of the business as a captive insurance owner.
This step is instrumental in giving the business clarity on such questions as:
- Could any of the identified risks be avoided altogether?
- Would it actually be better to transfer the risk to someone else?
- Should the business retain the risk?
Step 3—Enroute: Implement programs to start risk profile improvement
The “enroute” step is where the specially designed strategies developed during “take off” are put into play. This step also ensures that safety measures match the identified risk areas in alignment with regulations and refines what the risk profile will look like when the business is a captive owner. Trends, analysis, and data are taken into consideration to implement improvements, reducing insurance costs and fine-tuning the risk profile to that of a potentially profitable captive owner.
Step 4—Destination: Monitor and adjust for risk resilience
Each business and business owner is dynamic—what works today might not work as well tomorrow. For this reason, Flight Plan 365© facilitates continued monitoring and adjustment of the new and improved risk management program to ensure a continued perfect fit as the business evolves and changes.
How much time and effort goes into using Flight Plan 365©?
Considering the breadth and depth of the Flight Plan 365© approach, most business owners leap to the conclusion that taking advantage of this cutting-edge tool would entail a lot of time and effort on their part. In reality, the work needed to reap the full benefits of Flight Plan 365© is 95% on us at ReNu, and 5% on the business owner. The main reason we even need that 5% input from the business owner is that we will always need to be sure that the business owner’s voice—and their unique knowledge of the details—are reflected in their risk management program!
This sounds expensive–what does Flight Plan 365© cost?
Flight Plan 365© provides a staged approach to captive insurance ownership that enables the business owner to effectively own their risk and become a profitable captive owner. The resulting risk management program aligns with the key elements of how Fortune 500 companies manage risk, providing a diagnostic and consultative partner for risk profile improvement.
To learn about the cost of Flight Plan 365© and the potential returns on that investment, please read:
Our insurance specialists are available to discuss any questions you might have.
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