Whether it is to replace or supplement existing third party coverage or provide coverage for risks unavailable in traditional markets, a captive insurance company (CIC) may be the right alternative for your business. When created and managed properly, captive participants can enjoy improved risk management, better cost control and improve cash flow and liquidity. CIC Management, LTD (CICM) works with a variety of industries to form captives, including manufacturing, services, retail, construction, healthcare, and transportation, as well as many others.
The creation and management of a captive is directly dependent upon the needs of the business forming it. Our creation process involves several stages to ensure a viable captive that will deliver exceptional value to our clients.
Captive Formation Process
Evaluation of tax returns from the last five years.
Analysis of existing insurance companies, including premiums, limits, and exclusions.
Examination of business and affiliate insurance claims history.
Assessment of current organizational chart and ownership structure of all entities and subsidiaries.
This is followed by a feasibility audit by an independent actuarial team. The purpose of this stage is to:
Determine policy, coverage, premium distribution
Establish ownership structure of the captive
Designate a domicile
An application for forming a CIC is completed and sent to the insurance commission.
Upon the commission’s approval of the application, the captive is formally incorporated and bank accounts are established to fund the captive.
CICM then manages the captive on a daily basis, ensuring that it complies with regulatory requirements and provides tangible benefits to clients. Learn more about Captive Management.