Captive insurance company formations have been around for many decades and some of the largest commercial insurance company organizations in the world started out life as a "dedicated risk facility" or captive organized by policyholders to better serve their particular unmet needs. Captives are among the more sophisticated risk management vehicles in use today by individual companies or groups of companies. While there are over 5,000 captives in place today with the United States as the leading country domicile, they are not for everyone nor the best solution in every case. Even existing captives should be subject to periodic review to be sure it still meets the current objectives as they may have changed since the captive was organized. Here are some things we can do to help:
- Undertake a specific study to focus on the benefits of a captive, from forming a new venture to reviewing the operational results of an existing captive facility
- Provide Preliminary or Feasibility Studies* that are confined to a captive as a single alternative option;
- Evaluate captive options relative to subsidiary captives, group captives, rent-a-captive and protected cell captives in terms of benefits and risks associated with each form.
- Evaluate alternatives to an existing captive and review options and costs to wind-down operations (wholly owned) or exit participation in a joint (group owned) facility
*These study materials may not be submitted or otherwise be used by clients to file with any regulatory agency in order to comply with regulations concerning the submission of a Business Plan or similar documentation required for the purpose of acquiring or maintaining a license to operate, unless agreed in writing by CR Market Strategies, Inc.