What makes a captive insurance company successful is understanding that it is a business, says Jeremy Colombik, president of Management Services International. Mr. Colombik states that five factors come into play to make the business successful: (1) determining the type of risk to put into the captive (actuaries/underwriters), (2) minimizing commercial insurance costs, (3) better risk management, (4) increasing risk awareness, and (5) tax benefits. In the case of small insurance companies that choose an 831(b) tax election, the captive insurer may receive up to $2.2 million of premium per year without paying tax on the premium dollars received.