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Formation Process

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

Contact us for more information on our design life cycle.

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