How Captives Work
Setting Up a Captive
While creating a whole insurance company may seem like an incredible task for a non-insurance customer, a whole industry of professionals exist to accomplish this task on behalf of the insured or sponsor. Captive Managers not only facilitate the set up of the captive but manage the day-to-day operations on your behalf, such as issuing policies. They do this in conjunction with your insurance broker, a qualified accountant and attorney. Choosing the right partners is the first step in forming the captive. RBA has interviewed multiple captive managers, as well as obtained and vetted proposals.
Next is to choose a domicile, or where the captive will be located. There are numerous states, even foreign countries, with laws permitting the formation of captives. The regulations, requirements and procedures vary from domicile to domicile.