Captive Insurance Companies

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Captive insurance companies are excellent tools for risk management and tax planning for individuals and corporations.  I have served as actuary for captive insurance companies since 2012.

I am currently actuary for over 100 captive insurance companies, and I am active with the captive insurance company regulators in Delaware, New Hampshire, Nevada, North Carolina, British Virgin Islands, and Cayman Islands.

One of the first steps in forming a captive insurance company is preparation of an actuarial feasibility study.  These studies document the basis for premium rates and the financial structure of a new captive insurance company.  In other words, they describe for  the regulator the intended use for the captive.  Further, the documentation of a basis for the premium rates assures tax authorities that the premiums are reasonable in relation to the risks assumed.

As the captive begins operations it must file annual financial statements with the regulatory authorities.  Those statements usually must include an actuarial opinion that the reserves are adequate to meet future obligations.

Finally, the operations of a captive insurance company affect the tax returns and financial statements of its owners.  Actuaries are often involved in reserve calculation, financial analysis, and financial projections for captives.

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ITS ALL IN THE ASSUMPTIONS