Captive management back-office services are cost effective for captive managers which means more profit for the manager and more efficiency for the clients.
Captive insurance company owners typically have two choices to manage their insurance company. The first way is a “do it yourself” solution. This is where a Captive owner creates their own team to manage their captive. For most Captive owners, this task is easier said than done. While it might be tempting to use any Attorney and CPA to manage a captive, the consequences are too great. It is necessary to find professionals who are knowledgeable about Captives, not an easy task and it is possible these professionals are so busy, they have no room to add new clients. The second way to manage an insurance company is by hiring a Captive Manager.
Expert captive insurance managers provide a seasoned team of captive professionals that provide back office support for existing captives which includes Actuaries, CPAs, Attorneys, Account Managers and more. Burdensome back-office tasks such as staying in compliance, maintaining insurance department filings, creating claims processing procedures and many accounting tasks can be out-sourced to a Captive Managers. 831b captive factory is an appropriate term for services provided by a Captive Manager. 831b factory services enable business owners to concentrate on running their businesses, instead of trying to run a captive.
Captive management provided by an 831b factory starts with a team of experienced, expert captive professionals. The team approach can eliminate most headaches many captive owners endure. Employing a captive manager for back-office support of an existing captive means that there are no lengthy delays as a result of an illness, family emergency, holiday or vacation. When captive owners choose back-office management from a captive manager, there are multiple professionals who can take care of their needs now. Back-office Captive Management enables the owner to manage his or her business instead of being in the captive management business.
Featured Services
If you already have a captive or are a captive manager, we can handle your back-office
Captive Formation & Management
This includes many complicated steps which are most efficiently, and most cost effectively accomplished by engaging the services of an experienced Captive Manager who provides services commonly known as an 831b factory. Retaining the right Captive Manager is usually the first step to owning a captive insurance company.
For clients wishing to form a captive, the process begins by an 831b captive factory advising the business owner about the advantages and disadvantages of various captive structures that could benefit their business. This is closely followed by a thorough risk assessment which identifies risks that exist whether a business owner buys insurance or not. Choosing a captive friendly jurisdiction, known as a domicile is next, which is more likely to be “onshore” instead of “offshore” if the business is a U.S. taxed company. Onshore refers to domiciles in the United States. Offshore refers to domiciles outside of the United States. Once domicile is selected, the 831b factory starts captive formation. The formation process generally takes a month or two to set up and start operating but could be sooner.
Protected Cells
Protected Cells provide captive solutions which provide an alternative to conventional commercial insurance policies. Protected cells offer benefits similar to those available through group or single-parent captives. The main benefits are reduced capital contributions and reduced management costs which could otherwise prohibit a business from enjoying the benefits of owning an insurance company.
Captive Back-Office Support
Captive Back-Office Support frees the business owner of finding actuaries, attorneys, and CPAs who have enough captive knowledge. By choosing the services of a captive manager, the business owner gets precious time back to manage their business instead of managing their captive.
Frequently Asked Questions:
While it is true that many young attorneys and CPAs are hungry for clients and may appear to be a good deal, they are unlikely to possess enough captive knowledge for the task. Captive managers employ teams of skilled captive CPAs, attorneys and other captive professionals who know captives from every angle. Their experience results in cost effective captive management.
Captives are known for providing specialized insurance coverage for unique business risk which cannot be insured anywhere else. 831b factory refers to experienced, effective captive management for newly formed captives, as well as existing captives who seek more efficient and cost-effective captive management.
While it true that this plan could work, it is unlikely to succeed. Most successful business owners understand the value in outsourcing services since their own time is extremely valuable. Managing a captive needs to be by experts in the industry who can handles all the necessary rules and regulations that are applicable.
For many businesses captive benefits will exceed the costs. Generally speaking, businesses whose benefits exceed costs share similarities such as: low insurance losses, year to year profitability, adequate cash flow, gaps in their current insurance policies and the desire to turn insurance expense into an asset.
Let Us Help You
Call Us Today To Discuss Your Back-Office Support: 800-315-5302
For over a decade, 831BFactory.com has provided alternative risk solutions, as well as formation and management services to a wide range of companies in various industries.We certainly understand that you face a lot of risk as a business owner or risk management professional and that there are exposures and risks that can’t be covered with traditional insurance.
Raleigh Office
7000 Six Forks Road, Suite 104, Raleigh, NC, 27615
Chicago Office
1000 E. Woodfield Road Suite 233, Schaumburg, IL 60173
