How To Select 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. There is no commonly accepted definition of a captive manager and its responsibilities. However, a captive owner or prospective captive owner should ensure that someone has responsibility for the overall planning, including insurance, legal, tax, regulatory, claims handling and management, financial reporting, and compliance.
The captive manager should also be evaluated on its track record of success and its experience level as well as its approach to feasibility studies. There are also many moving parts in forming and designing a captive insurance company. Costs include actuarial, underwriting, claims handling, pooling, legal, tax, audits, and captive redesign as tax and state laws change. A captive manager should have a good handle on all of the moving parts and all of the associated costs.