To say that Braedy Walker (pictured) is excited about what can be achieved in his new role as captive insurance and alternative risk financing practice leader at PLATFORM Insurance Management is perhaps putting it lightly.
Here, the key hire shares with Insurance Business what is at the top of his agenda, what opportunities he’s keen to tap through the new offering, and what he believes will prove to be the most challenging aspects of the job.
Insurance Business: What are your priorities for the new captive insurance and alternative risk financing practice group?
Walker: The priorities start with building the infrastructure for the captive insurance arm of PLATFORM Insurance. This involves the creation of entities in both Alberta and Barbados (the two most popular domiciles for Canadian captives) in order to provide our clients with the necessary economic substance required to meet OECD (Organisation for Economic Co-operation and Development) guidelines.
“We plan on performing all the underwriting and captive management responsibilities for our clients in-house, so hiring will have to take place in both domiciles. When the infrastructure is built, PLATFORM will be the only company providing the necessary services from the actual domicile required to meet the economic substance guidelines stipulated by the OECD in their transfer pricing document. This will be especially important for clients as the OECD has stated they will be coming out with stricter guidelines at the beginning of 2025.
IB: What lessons do you bring to PLATFORM from your industry experience?
Walker: The last eight years running the captive insurance team at Hub has taught me a great deal around the setup of captive structures, the creation of captive programs, the necessary intermediaries involved with captives, and the ongoing management and advisory.
“This expertise will be crucial as I can take all these lessons and apply them to a blank canvas to design the captive team at PLATFORM in the most efficient manner, as opposed to working with an inherited structure. My experience implementing some of the industry’s most creative solutions will be hugely applicable to the new clients and prospects I’ll have the opportunity to work with here at PLATFORM.
IB: What do you consider the biggest challenges in the captive insurance market?
Walker: With the challenges we’ve seen in premiums over the last number of years, there are many clients out there who look towards a captive solution to save money on their premium in the short term, which is not what captives are for. They are a solution that allows clients to stabilize their insurance program for the long term, remove themselves from the volatility of the primary insurance market, improve their negotiating power, and ultimately save on their insurance costs for years to come.
“I would suggest that educating clients on this messaging and ensuring they are exploring the captive option for the right reason is paramount for the success of the program.
“Compliance with the OECD’s guidelines around transfer pricing is another element that we are going to see more of. For this reason, working with service providers that are up to date on the laws surrounding mind and management, as well as economic substance, will help clients avoid any regulatory issues whether they have a new or existing captive.
IB: What do you think are the opportunities for the newly created unit?
Walker: Simply put, this will allow PLATFORM to more effectively compete for big-box clients as we can now offer them a full suite of services that are offered by our competitors. We strive to be the best at the areas we specialize in, and the creation of this practice puts us firmly in the conversation to offer best-in-class service for clients with already existing captives or those clients looking to create their own captive.
IB: What do you look forward to in your new role?
Walker: The opportunity to work with a tight-knit group of very smart and ambitious people who are all rowing in the same direction to grow the company and provide best-in-class service to clients. The small footprint of the company provides my practice with infinitely more flexibility than I’m used to as far as client solutions are concerned, and I can't wait to see where that allows me to take this already thriving firm.
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