The Importance of an On-Site Captive Feasibility Study

June 07, 2018

Stewart Feldman, CEO of Capstone Associated Services, says that before undertaking the project of forming a captive insurance company and the payment of hundreds of thousands—if not millions—of dollars in annual premiums, most individuals or organizations will do advanced planning and analysis through a captive feasibility study. The captive feasibility study should be a substantive document done by professional teams that can understand the financial insured(s) contractual tax documents to see how a captive insurance arrangement will fit in. A two- or three-page fill-in-the-blank feasibility study does not address the issues that should be resolved.

The importance of the on-site feasibility study is to dig down a lot deeper than you would looking at 500 pages of policy information or historical loss data from a PDF in your office. You have to get out of your office and look at things.


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June 07, 2018