Our clients form captive insurance companies to take advantage of a variety of benefits. But ultimately it comes down to risk management and protecting the business. The Captive industry is under scrutiny from a several sources, so it is critical that captives are formed correctly.
Consideration for captive insurance ultimately boils down to a handful of factors:
- Is there significant insurable risk in the business? We need to ensure that the captive is issuing legitimate policies covering legitimate risk.
- Are the premiums commercially viable? The premiums being paid for these policies must be commercially reasonable and adequate.
- Is there an independent actuarial review for the coverages and premiums? To ensure the coverages and premiums are legitimate, Montera uses independent actuarial services to validate the insurance.
- Is the company profitable and viable to sustain the captive insurance for a long-term strategy? We want to make sure the company is solid, profitable, and understands the long-term nature of this risk and business management strategy.
If the results of the above concerns are favorable, then captive insurance may be a great strategy to protect your business, and create other significant benefits for your business!