Enterprise Risk
Management
International
Captive Insurer
In
October of 1991, Blackburn Group commenced its professional service
operations with a due diligence project on behalf of a private
international conglomerate holding company. The due diligence analysis
led to the establishment of a Bermuda
wholly-owned captive insurer, whose beneficial owners were the children
of the founders of the holding company. The benefits resulted in several
million dollars of captive earnings and tax savings at the time, with tax
free investment earnings thereafter until the money was released for
corporate or individual purposes. The total net present value at the time
of our involvement was over $30 Million.
NYSE Real
Estate Investment Trust Self-Insurer Development
The
market in 2002 was suffering from a severe contraction in capital
capacity due to the terrorist events of 9/11/2001. We were engaged to act
as risk managers and executive general adjusters to develop the existing
programs for more efficiency and cost effectiveness. In early 2002, the
company had announced to analysts that they expected to add several
million dollars of risk costs to the operations. We were able to collect
$5 Million dollars from previous insurers due to marketing errors, and
eliminate several million dollars from the existing programs. This
efficiency continued for our entire tenure, until the organization
decided to transfer all operational and hazard risks to insurers. By
continuously eliminating risk costs and increasing the efficiency of the
programs, the client was able to significantly differentiate themselves
from their competitors. Additionally, we believe our involvement allowed
them to gain several hundred million dollars of market capitalization.
International
Risk Technology Infrastructure
While
setting up the captive insurer in October of 1991, Blackburn Group
commenced its technology practice with a client server RiskPro program.
Robert Blackburn could not find an affordable technology program that
would meet the needs of the owner, risk, and claim managers. Initially,
using simple drawings, he designed a program that captured all of the
necessary data to manage the entire process. Over the course of many
years of development, the program has evolved to a web-based product managing
several billion dollars of risk exposures and claims. The value of the
infrastructure is that it transforms the arduous process of gathering
information for the annual marketing of the risk programs, and it manages
all of the claims costs associated with the programs. The infrastructure
has been lauded for its ease of use and value by Lloyd’s of London,
National Fuel, Energy East, and numerous adjusters worldwide. Tremendous
efficiencies are gained in the day-to-day operations of the risk programs,
as well as the marketing of the programs each year. The power of being
able to benchmark the current risks against similar risks in the market
is invaluable to clients who use it, and transforms the way in which risk
is analyzed, measured, and managed.
National
Insurer Program Development
In
the late 90’s, a national insurer asked us to pilot a tenant
business owners package in Ohio
for a select number of super-regional malls. While analyzing the related
loss information from the State Insurance Office for these classes of
business, we found that the standard rate structure was significantly
more than what was necessary to obtain a very profitable program. The
insurer decided that they would move forward with the program and grant
our joint venture a managing general agent status. The program grew to
several states in the Midwest, until the
joint venture was sold to another firm.
Utility
Company Risk Technology Infrastructure
An
international utility company engaged us after reviewing the RiskPro
technology infrastructure. We were the only developer who would customize
their program for client needs at that time in a cost effective way. In
addition to providing our core data model, we engineered a very unique
damage recovery system which has ultimately paid for the cost of the
program many times over. The program still exists, and we have further
engineered a web design which will extend the usefulness of the system
and enhance the operational and analytical power for many years to come.
Blackburn Group, Inc.
23 Bremen Circle, Penfield, NY 14526
(585) 586-4530, Email: sales@blackburngroup.com
RiskPro is a registered trademark of
Blackburn Group, Inc.
Copyright 1991-2010 Blackburn Group, Inc. All rights
reserved.