Captive Basics

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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Captive Insurance Pre-Formation and Feasibility Discussed by Panel

The Vermont Captive Insurance Association 2017 Annual Conference provided attendees with sessions from the basics to the most advanced. "Captives 101: Where the Mission Begins" was a foundational course for those new to captive insurance or those needing a refresher. Among other aspects, the session reviewed captive pre-formation and the captive feasibility processes.
August 14, 2017 Read More
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Employee Benefits in Captives: The Basics

A small but growing number of employers are tapping their captive insurance companies to fund employee benefit risks with a goal of reducing costs. This article reviews the basics, including the main drivers and the US Department of Labor approval process.
May 31, 2017 Read More
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Claims Handling in Captives

Owners of captive insurance companies have an opportunity to take much greater control of the claims process than with traditional insurance. When this control is exercised via a well-thought-out-and-executed process, the result will be lower costs and a more successful captive. This article discusses some of the key considerations and decision points.
May 22, 2017 Read More
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How To Set Up a Captive Insurance Company: A 5-Step Primer

Interested in forming a captive? This how-to article explores the 5 key steps every risk manager should undertake in creating a captive. While providing the basic elements, links within the article allow you to delve deeper into most of these steps.
April 24, 2017 Read More