Do the benefits of forming a captive insurance company exceed the costs? Jeremy Colombik, president of Management Services International, says this boils down to educating the client of all the benefits that a captive insurance company may offer. A lot of clients believe that they are being as efficient as possible by obtaining commercial policies. Effectively, they are already self-insuring, without knowing that there is a more efficient and better way to manage risk. Many clients are not aware that they do not have to be a Fortune 500 company to own a captive and achieve the benefits of captive formation. A small-to-medium-sized business owner grossing $1 million to $250 million per year can set up a captive program.