Ed Koral

An Introduction to Alternative Risk Financing Mechanisms

Experience Summary

Ed is with Deloitte’s Actuarial, Rewards & Analytics group in New York.  With over 30 years of experience in the risk management field, he provides support to corporate insurance buyers in the area of insurance program design and retention analysis, cash flow analysis, transaction design, and departmental organization, across a broad range of industry sectors. He has considerable experience in the evaluation, design, and marketing of alternative insurance risk programs and transaction structures, including captives, self-insured programs, risk retention groups, and franchisee insurance programs.

At Deloitte, he provides consulting services to organizations representing wide range of industry, including financial services, consumer and industrial products, retailing, heavy manufacturing, healthcare, pharmaceuticals, transportation, energy and telecommunications, and public sector.   Additionally, he regularly performs due diligence analysis for Deloitte’s private equity firm clients, evaluating the risk management and insurance programs of target companies.  His project work has included the following:

  • Leading risk assessment projects for numerous clients in the manufacturing, health sciences, higher education, and public sectors, reviewing the risk identification, risk retention and insurance purchasing functions, and devising go-forward strategies for the risk and insurance function as well as its interactions with internal customers and the commercial insurance market.
  • Assisting in the creation of numerous subsidiary insurance companies for non-insurance parents, in some cases integrating risk strategy with the company’s core business objectives.
  • Assisting clients in enterprise cost reduction projects related to insurance risk. This can include coordinating retention analysis, insurance/risk management staff modeling, as well as strategic sourcing of insurance vendor relationships.  In recent years, Ed has led projects for manufacturers, professional service firms, consumer products conglomerates, and institutions of higher education.
  • Assisting a large public authority devise a strategy for retaining losses related to casualty, construction projects and terrorism risk. Our work included assisting the client in selecting a domicile for a new captive insurance company, and identifying types of insurance risk that would be included in the captive.
  • Working with Deloitte Tax LLP, assisting a large healthcare client to successfully defend a tax deduction position for transactions executed with its captive insurance subsidiary.
  • Working with a large information technology firm in readying itself to become an appointed statistical agent for the life insurance industry in the US. Our services have included advice related to corporate governance, business plan development, capital budgeting, and liaison with key regulators.
  • Strategic support for several startup ventures interested in creating a new risk transfer products for the consumer marketplace. Analysis included research on regulatory issues, marketing and distribution strategy, and profitability and penetration analysis.
  • Conducting multiple merger & acquisition due diligence projects on behalf of strategic and private equity investors in the areas of insurance purchasing, program design, retained risk and risk identification.

Prior to joining Deloitte in 2002, he spent many years with Johnson & Higgins and Marsh & McLennan, where he devised placement strategies for alternative risk products, designed and managed captive insurance programs for corporate and healthcare clients, and managed the casualty consulting group in New York.  Ed also served as risk manager for Director of Risk Financing for American Express Company, where he managed the operations of two captives and devised the firm’s risk retention and funding strategies.

Ed has authored numerous articles on the subject of risk financing and captives, and speaks frequently on the subject.  He currently serves on the Board of Directors of the Vermont Captive Insurance Association.  While at J&H, Ed chaired the National Association of Insurance Brokers’ Task Force on Fronting, and represented NAIB on the Advisory Committee to the Reinsurance Task Force of the NAIC, lobbying and negotiating issues such as captive fronting programs and the use of alien reinsurers.


Employment History

  • Deloitte Consulting LLP, Senior Manager/Specialist Leader, (2002 – Present)
  • Marsh USA Inc., Senior Vice President, (1994 – 2002)
  • American Express Company, Director – Risk Financing, (1993 – 1994)
  • Johnson & Higgins, Vice President, (1983 – 1993)



  • MBA, Finance, New York University Graduate School of Business Administration
  • BA, Economics, Columbia University



  • “Claims Predictive Modeling: Not Just for the Big Companies Anymore”  Bermuda Captive Review (June 2013), with Amel Arhab and Kevin Bingham.
  • “Choosing your Captive’s Actuary: How Reliable is your Radar?” Cayman Financial Review (October 2012), with Daniel Leff.
  • “Products Recall: Covering Your Bottom Line” Contingencies (March/April 2011), with Kevin Bingham and Douglas Richter.
  • “Placing Owner-Controlled Insurance Programs in a Captive: Why It Still Makes Sense” Modern Contractor Solutions (January 2009)
  • “Conflicts, Overlaps or Synergies?”  (cover story of Captive Insurance Company Reports, August 2007)
  • The Self-Insurer, “Measuring Your Catastrophic Human Risk”  July 2006
  • “Reshaping the Business Model: How the insurance placement process will be redefined by compliance pressures and new business economics”  (Deloitte Research Point of View Publication, May 2005)
  • “Finite Risk Programs Feeling the Heat” (Financing Risk and Reinsurance, October, 2003)
  • “How Does TRIA Affect my US-Based Captive?” (Financing Risk and Reinsurance, July 2003)
  • “Best Terms: The Highest Common Denominator” (Financing Risk and Reinsurance, February 2003)
  • “Dealing with the Panic of the ‘How High is Up?’ Workers’ Compensation Market” (Financing Risk and Reinsurance, August 2002)
  • “Not Your Father’s Loss Portfolio Transfer” (Financing Risk and Reinsurance, April 2002)
  • “Integrated Risk Programs Still Making Sense” (Financing Risk and Reinsurance, July 2001)
  • “Tug of War: Finite Risk and Accounting Rules” (Risk Management, November 1995)
  • “Determining Whether a Risk Retention Group is the Most Appropriate Choice” (Risk Retention Reporter, March 1993)
  • “Update on the NAIC Anti-Fronting Model Act” (Captive Insurance Company Reports, September 1992)
  • “Profit Center Captives” (National Underwriter, 1992)
  • Speak at numerous insurance industry and professional seminars on alternative risk financing mechanisms and integrated risk programs. Quoted in various publications on these subjects.


An Introduction to Alternative Risk Financing Mechanisms – $750