Captive Insurance Management and Accounting Services
A captive insurance company is an alternative risk vehicle that has been established to insure the risks of a specific or group of specific organizations. Although the insurance policy may already exist in the marketplace, most carry exclusions that force business owners to absorb the heavy costs of claim coverage. Owning a captive can eliminate these exclusions, as specific or “unusual” risks can be written into the policy. Captives are also a great way for the company to self-insure its own risks.
A captive insurance company is formed with the permission of regulatory authorities. An insurance commissioner monitors the insurers' operations to ensure that certain criteria are met, including solvency and other regulatory parameters.
We specialized in domestic captives here in Utah, not offshore captives for our clients. We can help you setup your captive, keep your captive in compliance with the regulatory regulations and by managing your captive operations. We can coordinate your underwriting including many reinsurance options to keep you policy costs as reasonable as possible. We can also help you choose and manage your claim costs with the right TPA.
We also handle all aspects of the accounting and tax returns for the captive. Those services would include:
- Full service bookkeeping services - We handle the whole job from start to finish. That includes reconciling the banks and investment accounts, journal entries for the premiums, claims, commissions and expenses. Calculating and earning the premium. We also would work with your consulting actuary to help develop the claim reserves.
- Treasury management - We can assist your captive banking and investment advisory services.
- Audit administration - We can help you choose the right audit firm, help you negotiate audit fees as well as do all of the administration to coordinate with the audit staff so that it is prepared in a timely cost efficient manner.
- Consulting - We can assist you with a risk assessment of your internal controls with the current management solution and help you develop controls to mitigate risks in areas with excessive exposure. This would need to be done before you can complete a SOC audit.
- Tax return - We can prepare and electronically file your corporate tax return.