Forming and Operating Your Captive
Action Step Description Investment & Timeline
Feasibility Study
  • Answers essential question: “What will my return on investment be by using a captive?”
  • Includes analysis of risk to be insured, reinsurance, capitalization, operational plan, 5yr prospective financial statements and dividend and/or profit allocation system.
 Feasibility Study: TBD depending on scope of project.

Completion:4weeks after fulfillment of information request
Implementation
  • Client Instruction
  • RMA retains & coordinates service providers/TPAs
  • Finalize reinsurance application
  • Business plan drafted
  • Submit application to regulator
  • Receive approval letter
  • Finalize articles & bylaws
  • Receive Certificate of Authority
  • Client capitalizes the captive
  • Reinsurance is bound
  • Captive is operational
 Set-up: TBD
Completion:8 weeks
Management
  • Maintain compliance in domicile
  • Monthly Accounting
  • Underwriting & Policy Issuance
  • Annual Captive Audit
  • Tax return & related filings
  • Actuarial reserve analysis
  • Attorney Services
  • Corporate formalities
 Annual Mgmt: TBD
Claims Admin: TBD Risk Pooling: TBD
Captive Process
Interested in working with RMA? Use The Captive Navigator and the Learning Center to learn more about how you can work with us in setting up and managing a captive.
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