Captive Formation Design Life Cycle
The formation of a captive varies by the complexity of the organization.
Accurate assessment and analysis is the key to a cost effective and efficient analysis of the captive benefits.
Phase 1 – Design Analysis
A preliminary feasibility review will be conducted to access Captive viability in advance of a complete feasibility study.
Once proper client discovery and the viability of captive formation is agreed upon, a complete feasibility study will be performed inclusive of an actuarial analysis, financial, and operational evaluation of the proposed captive.
- Company Insurance Review
- Company Ownership, Entity Structure and Revenues Review
Phase 2 – Preliminary Feasibility Design
Comprehensive analysis will include review of the proposed risk to be underwritten, premium ranges and costs and a determination of the capitalization and reserves required.
- Risk exposure, coverage, premium allocation and captive ownership structure consultation
- Domicile designation
Phase 3 – Captive Application Process
Assuming captive viability and benefit, the application for Insurance company formation will be submitted to the Insurance Commissioner for domicile and corporate formation approval.
- Client captive application and incorporation
- Captive submission and approval process
- Captive capitalization
Phase 4 – Implementation
Upon formal approval, ACM will work directly with your company in the captive incorporation, capitalization and insurance policy underwriting and implementation.
- Domicile certificate of authority
- Company bank accounts
- Insured entity policy underwriting
Phase 5 – Captive Management
ACM maintains an on-going management position within your Captive Insurance Company to assure the performance and compliance of the business entity.
- Policy distribution
- Tax and accounting designations
- Operational and regulatory administration