Manage your business, not your captive.
Simple and captive insurance company management are usually not synonymous. Captive compliance, captive formation, captive management and captive exit strategies are arduous, daunting tasks. So that business owners can concentrate on running their businesses, most business owners choose from among many experienced captive managers.
Captive owners who attempt to assemble a team of captive professionals have a nearly impossible task. Finding an experienced, expert captive manager saves time, money and headaches. Expert captive managers provide turnkey captive solutions only attainable with dedicated teams of Actuaries, Attorneys, and CPAs. The right captive manager makes owning a captive simple.
Captive regulations, management and compliance can “hold business owners precious time Captive.” The penalties for noncompliance are significant and can jeopardize the license of your captive. Take back your time Captives took with simple captives.
Featured Solutions
Captive Insurance
Captive insurance generally is where a business owner owns an insurance company to insure their own risk. An exception to this is an Agency Captive.
Pure Captives
Also known as a Single Parent Captive is a subsidiary insurance company that insures loss exposures of its parent and/or affiliates. Examples of Pure Captives could be for Coca Cola and other Fortune 500 Companies.
831A Captives
A captive structure is taxed as a US Corporation whose gross insurance premiums are greater than 2.3 million per year.
831B Captives
Also known as micro-captives. These business risk solutions assist in mitigating risk for small to mid-sized businesses, where the owner keeps underwriting profits.
Captive Back-Office
The “back-office,” is the captive manager’s team of many different professionals needed to run the captive. These include CPAs, Actuaries, Attorneys, account managers, claims managers and more. The “back-office” team performs the multi-faceted functions of accounting, actuarial services, administration, claims management, claims processing, regulatory compliance and tax compliance for clients who own licensed captive insurance companies. Strong, efficient captive back-offices keep Captives compliant while reducing operating costs. Since experienced back-office teams have more than one of each professional on staff, that means there should not be delays in tasks to run your captive.This avoids hearing the person who handles a task is sick or on vacation. Just as sports teams have multiple players for each position, a captive manager should have depth in their staffing. Teams need depth in order to finish the fourth quarter just as strong as the first quarter of a game.
Captive Formation and Management
Captive formation and management is no longer complicated and time consuming. If a business secures the right captive manager for its’ needs, then their captive solution should run smoothly. Carefully performing due diligence is crucial, as there are significant differences between managers. Some Managers offer complete suites of services and others offer an ala carte menu. Since Captive Managers serve as the Captain of the captive ship, it is important to find the right one.
Most businesses seeking a captive solution choose to engage captive managers. There are many skilled captive managers available and communication is key. Captive Managers should communicate in a clear manner which is understandable to captive owners who are not insurance professionals. Communication with your captive manager such as acknowledgement of an email sent or phone call made within 24 hours, even if it takes longer than 24 hours to provide an answer are items an owner should expect.
Captive formation includes creating documents for the insurance department. Management includes financial, regulatory and compliance reporting.
Frequently Asked Questions
The IRS has made a big deal out of actions taken against a few “so called” Captives that were not operated as insurance companies. The truth is that there are thousands of captives in the vast majority that are formed and operated for the right reasons. As such, captives formed and operated for the right reasons should be fine.
Many CPAs know little or nothing about captives and therefore do not want to engage in that conversation. In addition, there are many false captive misconceptions that prevent certain CPAs from even researching them.
Let Us Help You!
For over a decade, Management Services International (MSI) has provided alternative risk solutions, as well as formation and management services to a wide range of companies in various industries. We certainly understand that you face a lot of risk as a business owner or risk management professional and that there are exposures and risks that can’t be covered with traditional insurance. Things like loss of key talent, business interruption, regulatory changes and regulatory investigations are all covered with captive insurance. In fact, Congress formulated captive insurance to insure against risk. At MSI, it is our mission and goal to make Risk Management Profitable and our expert captive managers will manage and form captives onshore and in offshore domiciles.
Raleigh Office
7000 Six Forks Road, Suite 104 Raleigh, NC, 27615
Chicago Office
1000 E. Woodfield Road Suite 233
Schaumburg, IL 60173
Puerto Rico Office
268 Ponce de Leon Avenue, Suite 1121
San Juan, PR 00918