What is a Captive Insurance Company?

A captive insurance company is a corporation formed either in the United States or in a foreign jurisdiction for the purpose of writing one or more lines of insurance to a small (and usually related) group of insureds. Captives are usually formed by companies when business insurance for certain commercial risks cannot reasonably be obtained through traditional insurance markets.

What is an Alternative Risk Financing Program?

Alternative risk financing programs are ways in which a Company can take control of its insurance needs outside of traditional commercial insurers. They include self-insurance programs and captive insurance companies.

What are the Advantages and Benefits of a Captive Insurance Company?

Affordability, stability, availability, sharing in underwriting results, underwriting control, improved cash flow benefits, coverage flexibility, direct access to reinsurance markets, claims handling control, potential tax savings, estate planning and business succession opportunities.

How do I know if an Alternative Risk Financing program is right for me?

If you are finding that traditional insurance is unaffordable or specific coverage is difficult to obtain, then you should explore alternative risk financing programs. A Captive Feasibility Study will assist you with evaluating the potential benefits and costs associated with this type of program.

What is a Captive Feasibility Study?

This term refers to an in-depth analysis to explore the merits of employing the captive insurance concept to manage and control your insurance risk. In short, this study allows you to determine if utilizing a captive is right for you.

What is my next step?

You should contact CFMC Inc., an experienced insurance and risk management company, whose principal has over 35 years of experience in the insurance consulting field. CFMC Inc. offers a full range of services including Feasibility Study, determination of the proper domicile, formation of the captive and the ongoing accounting and administration of the captive.