Captive Basics

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Can a Captive Insurance Company Insure Employee Benefits?

Increasingly, organizations today utilize some form of captive insurance to fund the costs of employee benefits such as medical and life insurance, accidental death and dismemberment, long-term disability, and retirement. Learn about the advantages and disadvantages of funding benefits through a captive insurance company.
May 06, 2019 Read More
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Forming and Operating a Captive Insurer Involves Constant Change

Captive insurance companies should be in a continual process of evaluation, and captive owners should continually be reviewing and evaluating their captive program's exposures, coverages, and limits of liability to determine how these impact the capital in their captive, according to captive experts.
April 23, 2019 Read More
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How To Set Up a Captive Insurance Company: A 5-Step Primer

How do you set up a captive insurance company? Find out the key steps necessary to successfully establish a captive insurance company on Captive.com.
April 10, 2019 Read More
  Mark Sims

Establishing a Captive Insurance Company

According to Mark Sims, vice president of business development at Captive Alternatives, LLC, the process for getting a captive insurance company established can be approached by taking the business owner through the underwriting process, just as it would do if it were buying any insurance.
April 08, 2019 Read More
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What Is a Protected or Segregated Cell Captive?

Captive insurers fall into two main groups. Pure captives are 100 percent owned, directly or indirectly, by their insureds. Sponsored captives are owned and controlled by parties unrelated to the insured. Read on to learn about rental captives and protected cell captives.
March 04, 2019 Read More
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What Are the Key Elements of a Captive Feasibility Study?

What is a captive feasibility study? A feasibility study is a study undertaken to determine whether a contemplated risk financing program is feasible for a particular organization or group of organizations. A study, or a proposal for a captive feasibility study, should always begin by stating its scope and purpose.
February 18, 2019 Read More
  Rob Walling

Captive Feasibility: An Actuarial Perspective

According to Rob Walling, principal and consulting actuary with Pinnacle Actuarial Resources, Inc., in the captive feasibility study, a business or a group of businesses may be investigating forming a captive insurance company. One of the first steps in that process is to engage an actuary.
February 13, 2019 Read More
  Stewart Feldman

Selecting a Captive Manager

Stewart Feldman, CEO of Capstone Associated Services, advises that a prospective captive owner should consider a number of factors before selecting a captive management team.
February 06, 2019 Read More
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Considering the Claims Benefits of Captive Insurance

There are numerous claims benefits with captive insurance, according to Lynn Sheils, general counsel of EWI Re. Benefits include the ability to (1) settle claims quickly to protect reputation, (2) litigate claims to set a precedent or to avoid claims piling, (3) choose legal counsel, and (4) control risk costs.
November 05, 2018 Read More
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Why Should You Consider Forming a Captive Insurance Company?

Once just a speck on the commercial insurance market landscape, captive insurance companies have become a mainstream risk management tool. To boost understanding of captives, especially group captives, a panel of experts recently discussed a wide array of captive issues. Read on to learn more!
October 24, 2018 Read More
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Why Should You Do an On-Site Captive Feasibility Study?

Stewart Feldman 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.
October 10, 2018 Read More
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What Are Association and Group Captives?

Group captives are formed when a group of individuals or entities comes together to jointly own a captive insurance company. Sometimes they are sponsored by industry associations for the benefit of their members, hence the alternative name "association captive."
September 27, 2018 Read More
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Captive Insurance Planning and the Role of Advisors

Captive insurance planning takes a team of people to put a program in place according to Stewart Feldman of Capstone Associated Services. The certified public accountant, the traditional property and casualty insurance broker, and the wealth adviser are just a few of the individuals interested in the integrity of captive insurance planning.
August 31, 2018 Read More
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What Is Risk-Based Capital—A Primer for Captives

This primer for captive insurers on the concept of risk-based capital (RBC) describes the four basic components of RBC and how the components fit together to arrive at the ultimate ratio.
August 13, 2018 Read More
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What Is Captive Insurance?

What is captive insurance? A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.
August 08, 2018 Read More
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Captive Basics: Understanding Liquidity

Captive board members should understand several key concepts. Chief among them is liquidity and how it impacts their captive. This article provides a basic primer on liquidity for both new and seasoned board members.
July 30, 2018 Read More
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You Own a Captive Insurance Company, Now What?

It is important that new captive owners know what to expect from their captive manager to ensure the captive insurance company is running in a profitable manner and in full compliance with the chosen captive domicile's laws and regulations.
June 25, 2018 Read More
  Stewart Feldman

Is Captive Insurance Right for Your Business?

In evaluating whether captive insurance makes sense for your business, Stewart Feldman, CEO of Capstone Associated Services, says that attention should focus on the risk management issues and the business exposures. The evaluation process should concentrate on the risk exposures for the particular business at hand.
June 13, 2018 Read More
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Why Cash Flow Is Key for Captive Insurers

Cash is king. This is especially true for captive insurers, since they typically have fewer margins for error. Captive board members should understand their captive's cash flow, so let's discuss some key areas for exploration and understanding.
May 17, 2018 Read More
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Top Tips for Hiring a Captive Manager

Early on, the board of directors of a new captive insurer is charged with retaining a captive manager. The creation of a successful partnership between the board and this professional service provider is critical. In this article, Editor John Foehl discusses his top tips for conducting the request for proposal process when interviewing and retaining a captive manager.
March 28, 2018 Read More