Captives Explained
The Growth of Captive Insurance and the Crossroads Difference
Captive insurance was first developed in 1953 when the first active captive insurance company was formed by a financial services professional. In the following years, captive insurance companies and other self-insurance options appeared in the marketplace. Of these alternative risk solutions, captive insurance continues to be the most customizable and cohesive option for large and small companies looking to manage risk through self-insurance.
Through years of refinement, captive insurance companies and Risk Retention Groups are now considered to be long-accepted and preferred options for companies looking for ways to keep their risk profile minimized.
The global insurance marketplace recognizes the United States of America as a leader in captive insurance formations and in captive insurance management.
Based in Atlanta, Georgia, Crossroads Risk Management, LLC is currently formally licensed and approved in eight U.S. domiciles with an emphasis on the complete southeastern United States but also with business operations in the western and northeastern United States.
CRM is prepared to service the needs of emerging, mid-size, national and multinational firms seeking Captive Manager representation. Through a unique combination of industry experience coupled with insurance regulator skills, Crossroads occupies a place as the country’s only Captive Manager firm led by a former regulator who has supervised all captive insurance activity for a large American insurance domicile.
That’s the Crossroads difference: a singular merging of industry and regulatory skills that help clients achieve their desired results in an efficient way!
Captive Insurance Companies Explained
A captive insurance entity, sometimes called a “captive” or a “captive insurance company” is a component or formally organized subsidiary of a larger firm that owns a captive as it is the owner of the parent firm and the captive company that self-insures it.
The functions of a captive insurance company include lessening and better controlling risk exposure by insuring its owner to help control costs and lessen risk exposure.
Captive companies can be formed to customize risk management as needed, providing options on coverage by replacing, exchanging, or streamlining coverages in an often-customized way.
In many cases, captives are often seen as among the most bespoke tools for insurance professionals to assist firms in their risk management and self-insurance needs.
Key features of captive insurance include financial benefits to the captive owners such as supervision of the capital (within government-mandated solvency requirements) and direct control of the captive insurance entity by its owner, among other advantages.
Crossroads Risk Management has experience in all these matters and always welcomes new clients to assist with their captive insurance and self-insurance needs!
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Captive Formations
Each captive must be formally organized and wholly adherent to applicable laws and regulations governing captive insurance entities in their chosen domicile.
There are benefits to formation in several captive domiciles. Crossroad Risk Management is formally licensed and approved in many of the strongest captive domiciles in the United States of America.
Crossroads has experience with formation of all the types of captive insurance entities and the required filings required for regulators for each captive entity type including Pure Captives, Association Captives, Cell Captives and their variations, Risk Retention Groups and more.
With this hands-on regulatory experience and company President Travis Bowden’s time leading Georgia’s captive insurance effort for the state of Georgia, any regulator questions or concerns can be ably and efficiently addressed as clients’ filings are reviewed by regulators.
By speaking with prospective clients and understanding their needs, Crossroads can find the best captive insurance options for each client.
Captives by the Number
Captive Insurance Companies and Their Filing Needs
In many cases there are numerous tax advantages for captives that are contingent upon formal formation approval from their domicile’s insurance regulatory entity.
Crossroads Risk Management has years of experience in formation strategies to assist clients’ legal and accounting teams in their assessment of the best option for their employer.
By meeting and exceeding the required standards on solvency and filing requirements, a company will be poised to have strong regulatory compliance. This is true for a new firm or an existing firm.
CRM President Travis Bowden modernized the Georgia Department of Insurance’s Captive Insurance team through his work on the Georgia Department’s new captive insurance filing portal and through upgrading compliance patterns. By engaging Crossroads Risk Management, a client will be taking on a Captive Manager that understands both private and public sector needs around the country.
Captive Insurance in a Shifting Financial Marketplace
Captive Insurance has served as a customized option for business owners around the world since 1953.
In part, this is because of the many options afforded to captive insurance company owners.
Since risks are multifaceted and complex, it is helpful that companies and associations that may explore forming captives and Risk Retentions groups often have formation options to choose from.
By choosing the right option for each filer, the entity type with the most applicable strengths can be formally applied for with the proposed entity’s applicable regulators. Through engaging Crossroads Risk Management, filers can be professionally advised on selecting the filing option that can best shield them from financial risk and regulatory exposures.
Now more than ever, a shifting economy can hold certain risks for each business entity. Through utilizing the right self-insurance option, a hard market or a shifting market’s risks and large financial losses can be mitigated through the correct captive or self-insurance option.
Flexible options, customized business plans and control of the captive insurer are just some of the many benefits of captive formation and operation. Traditional insurers lack this level of freedom as they provide coverage, and many business owners are very satisfied to own their own captive insurance company as an alternative.
Crossroads Risk Management has the unique industry expertise and the regulatory background to assist each filing company with its needs!
Client Engagement
Crossroads Risk Management is a firm that is taking new clients for captive and Risk Retention Group formations as well as firms looking for a new Captive Manager to better assist with the needs of their existing captive insurance company.
By engaging CRM, a new client will have the benefit of nuanced government and regulatory experience along with private sector skills and superior insurance training from the Crossroads team.
For every step of their filing needs, clients looking for hands-on assistance and dedicated expertise for their Captive Manager need look no further than Crossroads Risk Management. We look forward to working with you!