If you've been around captives for a while you've undoubtedly heard someone say “if you've seen one captive, you've seen one captive.”
Captive insurance companies (those that are wholly owned and controlled by the insureds) are varied, and there are a thousand different paths any one entity can go down when looking at forming a captive. Just think of all the permutations that are possible when it comes to coverages, retentions, limits, reinsurance, type of captive, type of ownership structure, domicile, service provider selection, stated goal of the captive, related or unrelated business and so on.
These are “micro” decisions, and it's best to have qualified captive professionals engaged to assist you when walking through the decision processes. But there are also macro decisions entities should be making when contemplating a captive. When considering these macro decisions, engaging a captive professional can be useful but not always necessary.
|Senior management buy-in
Probably one of the most important aspects when forming a captive is to have senior management buy-in; without it, the captive will be short-lived. A captive arrangement is a long-term play, not something your entity should be popping in and out of.
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