Captive Basics

  Lynn Sheils-SF

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
  Looking for Answers-SF

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
  feldman stewart 600x300

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
  Business Man Questions SF Feature

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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The Role of Advisers in Captive Insurance Planning

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
  Accounting Business Acronym RBC Risk-Based Capital 600x300

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
  Businesswoman Asking Question-SF

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
  Calculator Figures Liquidity

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
  Captive Management image cp600x300 JPG

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

Does Captive Insurance Make Sense 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
  Man Holding Money 600x300

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
  Hiring manager 600x300

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
  Boardroom-SF

5 Top Tips for Building a Board of Directors

The role of the board of directors has evolved over the last decade. Today's boards need to be more strategically focused. We offer some top tips for building your captive board from scratch or reinventing a board for a more mature captive.
February 28, 2018 Read More
  View from the Cockpit-SF

A View from the Cockpit: Systems and Controls of Good Captive Managers

Successfully managing a captive insurance company involves many functions, including financial accounting, corporate governance, underwriting and risk management, regulatory reporting, and overseeing the work of various service providers. Captive managers should have in place a system of organizational controls that provides accurate and thorough administration and reporting of these functions.
February 19, 2018 Read More
  martin ellis-SF

Custody for Captive Insurers

Martin Ellis, manager of Comerica Bank’s Captive Insurance Group, says custody for captive insurers is the holding or safekeeping of a captive's financial assets in an account. Custodians' duties include (1) reporting, (2) settling trades, (3) collecting dividend and interest income, (4) handling proxy voting, and (5) Schedule D reporting.
January 22, 2018 Read More
  Jeremy_Colombik_video

Is Captive Insurance Right for Your Business?

Do the benefits of forming a captive insurance company exceed the costs? Jeremy Colombik, president of Management Services International, says that this boils down to educating the client of all the benefits that a captive insurance company may offer.
November 30, 2017 Read More
  Jeremy_Colombik_video

Risk Management Made Profitable with a Captive Insurance Company

Jeremy Colombik, president of Management Services International, says that business owners have a choice to purchase insurance coverages or not. Regardless, the risk remains. Business owners can make risk management profitable and improve their commercial insurance policies with a high deductible insurance policy that moves risk into a captive insurer.
October 16, 2017 Read More
  Key to Success-SF

5 Key Attributes of Captive Managers

Captive managers are an integral part of any captive insurance program. But what are the key attributes that captive insurers and their owners should look for when evaluating and selecting a captive manager? Here are five for consideration.
October 11, 2017 Read More
  Businessman with Questions-SF

5 Questions To Ask When Considering a Captive Insurance Company

Under the right circumstances, a captive can provide myriad benefits and, increasingly, mid-to-large firms are looking to form or join a captive insurance company. Find out how captive insurance companies operate, the different types of captives, and five key questions to ask when considering whether to form a captive.
October 02, 2017 Read More
  Jeremy_Colombik_video

Common Myths about the Captive Insurance Industry

Jeremy Colombik of Management Services International (MSI) debunks these common captive industry myths in a Captive.com video: that all captives are tax shelters and offshore, that captives do not provide additional coverages, that captives are not a good business decision, and that only Fortune 500/1000 firms are good for captives.
August 29, 2017 Read More