What is micro captives ?

The current world of health and life insurance can stress you out if you’re a small or large business owner. Mergers, government rule changes, and premium increases have confused you. At this point, you may not be sure how to provide proper insurance to your employees.

Captive Insurance May be the Answer

The solution could be in an alternative known as captive insurance. Started in the 1950s, this industry has grown over the last several decades to become a true replacement for mainstream insurance programs.

Whether a standard captive or micro captives which require smaller premiums, this insurance program provides both a savings and a profit for employees and owners. However, in order to bring this into your organization, some legwork is required. Here are three things you need to start a captive insurance company.

Determine its Structure

There are many forms of captive insurance. For example, a Single-Parent Captive is one which becomes a subsidiary of your company. An Agency Captive is established by an insurance broker. Organizations like Captive Resources can help you determine the best option.

Create a Feasibility Study

There are a few reasons for this. First, it provides scope to what is required to establish a captive. Second, it can break down the initial investments required to get this started. Third, you can determine if your employees would be interested in participating in such a program.

Hire a Captive Manager

This should probably be the first thing to do. Even if you don’t decide to go the captive route, hiring a manager can make the process easier. They can go through the structures, put together the study, and compile the results. From there, you can decide to hold back or move forward on a captive.

These are the most important tasks in your decision-making process. Once you get through these, you and the captive manager will need to discuss initial investments, the company you wish to work with, and the programs you want in your captive. Though hard work, the results will be welcome.