Inside the Captive Feasibility Study Process

A feasibility study is one of the most important early steps in forming a captive insurance company. In our latest video, Courtney Boles of Management Services International breaks down the core components of a captive feasibility study and the role it plays in determining whether a captive structure is appropriate. The video explains that the initial audience may include business owners, captive sponsors, and board members, while regulators, auditors, and legal counsel may later rely on the study when reviewing the captive's structure and performance expectations. 

Key elements include defining the captive’s purpose, the risks to be insured, the planned structure, and the proposed domicile. The feasibility study typically includes actuarial analysis, underwriting considerations, potential pooling or reinsurance arrangements, and financial projections showing expected outcomes across loss scenarios. Viewers will also learn how pro forma models support decision-making and demonstrate the captive's viability to regulators and other stakeholders. 

📺 Watch the full video on Captive.com to better understand how feasibility studies shape captive formation and support a sound regulatory review process.