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Captives/Rent-a-Captives
For
clients contemplating the establishment of a new captive or joining
a group captive, we offer excellent pre-feasability/feasibility services.
Pre-feasibility.
We will offer a no-cost opinion of a feasibility study’s potential
value and an estimate of time and expenses if the candidate decides
to commission a study. We are in business to sell our ART expertise;
however, our interests are not served by recommending a study when
the facts indicate otherwise. We would rather tell the truth at the
onset, thus preserving our nascent relationship with the candidate
and the possibility for future business.
Feasibility. We answer two important questions: “Do
we need a captive, and if not, what do we need?” and “If
we don’t need a captive, are there other good reasons for forming
(or joining) one?”
To do this we:
• Conduct In-depth research into each client’s business
drivers, organization, capital structure, and cost of risk
• Exposition on potential captive uses (insurance coverage),
benefits, frictional costs, and potential for failure (risk factors)
customized to each client’s individual circumstances
• Projected captive financial statements
• Capital & surplus requirements
• Expected loss modeling (pre-actuarial analysis)
• Captive governance
• Domicile review
• Limits retention analysis
• Excess insurance market intelligence
• SEC implications (if any)
• Loss prevention and claims management imperatives
• Overview of taxation issues
When
clients decide to form a captive we provide full post-feasibility
(implementation) services including:
• Review and oversight of broker-related excess insurance placement
and fronting insurer activities
• Assistance with administration
• Identifying and hiring domicile service providers
• Guidance through the domicile application process, including
business plan development and domicile meetings, introductions to
the domicile’s captive regulatory officials
• Consultation on board, committee, and policy decisions –
e.g., underwriting protocols, and premium and equity allocations
Providing
Additional Services
In addition to facilitating the necessary legal, accounting, licensing
and support functions, we are available to assist our clients in performing:
Captive feasibility studies, Loss analysis/risk retention analysis,
Program design, and Risk financing reviews.
At
Pacific American Risk, we handle a variety of other risk management-related
services including:
•
Alternative Risk Transfer
• Brokerage Services
• Business Risk Consulting
Want more information on our Captives/Rent-a-Captives services? Contact
us today!
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