How to Identify the "Sweet Spot" for Captive Formation

A recent video, filmed at the Mid Rivers Risk Forum, features T.J. Scherer, vice president at Spring Consulting Group, discussing how organizations can identify the right time to form or join a captive insurance company. Mr. Scherer explains that timing is rarely determined by a single metric like premium level or industry segment; instead, organizations should evaluate their objectives, risk tolerance, and current program structure. Asking progressively deeper questions—beyond whether a company is "big enough" or "small enough"—leads to a more informed decision about pursuing a feasibility study or joining an existing captive.

Mr. Scherer also discusses aligning timing with corporate cycles, noting that some companies can launch midyear if already retaining significant risk, while others may benefit from coordinating with renewal periods. He highlights the Mid Rivers Risk Forum's value in connecting local and out-of-state risk leaders, brokers, and captive professionals, fostering conversations on program design, diversification, and long-term planning.

Watch the video now on Captive.com.