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Joining an Association Captive
Should you consider an Association Captive as an alternative to your present
insurance situation? This page will help get you started in your evaluation process.
Following is a list of questions to consider before forming or joining an
Association Captive:
- How many other members or companies are interested?
- What lines of insurance would be written through the captive?
- How do you and the other members feel about pooling of risks --
that is, sharing the cost of losses with other members, some of whom may be competitors?
(Note: It is sometimes possible for a captive to be formed such that
each member is responsible for all or most of its own losses.)
- Are you and the other members willing to make a long term commitment,
say for at least five years?
- Are you and the other members willing to make a financial commitment
in order to capitalize the captive?
- Are you and the other members willing to make a commitment to loss control?
- Will the captive be able to provide you with coverages that you cannot obtain at a reasonable price in the traditional market?
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| Benefits Perspectives, Spring 2008
Are your nonqualified deferred compensation plans 409A-OK?
[To Benefits
Perspectives Menu]
P&C Perspectives, March 2008
Internal Revenue Service: 2007 Election to use company payment
patterns to discount loss reserves.
[To P&C
Menu]
Using Captives for Employee Benefits, Spring
2005
A presentation describing how and when your company might use a captive
for employee benefits. [To
Presentations Menu]
To learn more about Milliman, visit our Corporate
Home Page
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