Does the captive need to have an actuarial review, and does it need to be audited each year by an independent CPA firm?
Respected domiciles will require an annual audit by an independent CPA firm or its equivalent, with industry specific experience in the insurance industry. Many domiciles require a formal actuarial review of your captive’s policy pricing and loss reserve methodology, while some jurisdictions do not. Absent a formal actuarial review of premiums and loss reserves, your captive will, nevertheless, need to properly document its policy pricing and loss reserve methodology.
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- Does the captive need to have an actuarial review, and does it need to be audited each year by an independent CPA firm?
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