How can I be sure a captive operation would work for my associations sponsored insurance program?
The only way to be absolutely certain is to actually begin operations. However, there is a quick and inexpensive way to assess the potential success of your captive with confidence. For a modest fee, AIC’s consultant and captive manager will conduct a one-day meeting with your staff to analyze and examine your opportunities and likelihood of success. At the end of this meeting, you should know if it makes sense for you to implement your own captive. What are my profit opportunities? Your association probably already receives a “royalty” for the endorsement of your sponsored program. That shouldn’t change. But once you begin captive operations–perhaps by reinsuring the sponsored program–you also can earn underwriting and investment income. Underwriting income is that part of the premium remaining after expenses and losses have been paid. Investment income can be earned on the reserves you hold to pay future losses. What will be the financial risk to my association? Is it quantifiable?
Related Questions
- My corporation is interested in getting involved with the Operation USO Care Package program. How can I contact the USO if I have additional questions?
- How can I be sure a captive operation would work for my associations sponsored insurance program?
- What is the Community Association Insurance Program?
