Business Plan Design

In the formation of a captive insurance company, one of the essential documents is a comprehensive business plan. A business plan plays a crucial role in guiding the overall strategy and operations of the captive insurance company. It provides a roadmap for success and helps outline the company's goals, objectives, and financial projections. A well-developed business plan demonstrates to regulators, stakeholders, and potential reinsurers that the company has a solid foundation and a clear vision for the future.

Components Of A Captive Insurance Company Business Plan

A business plan for a captive insurance company should include several key components:

Executive Summary: This section provides an overview of the captive insurance company, including its mission statement, goals, and objectives.
Company Description: Here, the plan should outline the nature of the business, the target market, and the unique value proposition of the company.
Plan of Operation: This section includes detailed information on the type of captive insurance company being formed, along with the business purpose and description of the policies being issued.
Risk Management Strategy: A captive insurance company's business plan should outline its risk management strategy which could include underwriting guidelines, claims management procedures, and reinsurance arrangements.
Financial Projections: This is a crucial section that includes the company's revenue forecasts, expense projections, and profitability analysis.
Management Team: The plan should highlight the experience and expertise of the management team and key personnel.
Compliance and Regulatory Considerations: It is essential to address compliance and regulatory requirements specific to the captive insurance industry.
Implementation Plan: This section outlines the steps and timeline for launching and operating the captive insurance company successfully.
Appendix: Any supporting documents, such as market research data, financial statements, and resumes of key personnel, should be included in the appendix.

Creating a comprehensive business plan for a captive insurance company is crucial to establish a strong foundation and gain the trust of regulators, reinsurers, and stakeholders. It provides a clear roadmap for success and demonstrates a thorough understanding of the industry and the company's goals and objectives.

Practice Leader(s)

Captive Practice Leader, Managing Director

Max Jong

Captive Practice Leader, Managing Director

Max Jong is the Captive Practice Leader and Managing Director at Risk Management Advisors, an alternative risk and captive management firm. Max began his career at Northwestern Mutual in 1994 after graduating from UCLA. Over 12 years, he built a successful financial services practice while heading up an office overseeing 50 professionals in Los Angeles and Irvine, California. The office was perennially one of the top producing organizations in the Northwestern Mutual system.

Max joined his partners at Risk Management Advisors in 2007 as he began to work with more sophisticated mid-market business owners. RMA specializes in the design, formation and management of captive insurance companies. There’s also an emphasis on self-funded group benefits as well as other creative alternative risk management strategies. The firm assists businessowners in better managing their risks without jeopardizing their balance sheet. In 2019, he headed up a merger with Risk Strategies, a Top 10 private national specialty insurance brokerage and consulting firm. Since then, he was appointed as the Captive Practice Leader to oversee the growth and development of the organization.

For 5 years, Max served as an Independent Director for Fiat Lux Risk and Insurance Company, one of the largest and most sophisticated captive insurance companies. Fiat Lux was established by The University of California Regents to better manage the broad risks of the University of California system.

Max has also been a life-long supporter of Big Brothers Big Sisters of Greater Los Angeles. He initially volunteered to be a mentor in 1995 and is currently mentoring his second "Little". Max was asked to join the Board of Directors in 2000 and eventually serving as their Board Chair. After 20+ years as an active board member, he continues to support the organization by serving as a Trustee.

He is married to Alice and they’re raising two young children, Hunter and Hayden. Max and Alice are happily married despite her irreparable mistake of having gone to USC. He loves to travel, loves to golf and a hopeful Lakers fan.