Alternative Risk

A captive insurance company is one which insures the risks of its shareholders. The business of establishing one is a completely foreign subject to most people and for some companies, it can be inappropriate. It is important that organizations considering a captive insurance company have the right advisor.
Typically, captives are formed for one or some combination of the following:

  • Cost reduction

  • Unavailability of coverage

  • Insuring the uninsurable

  • Risk retention, risk management and loss control

  • Cash flow benefits

  • Access to reinsurance markets

Deciding if establishing a captive insurance company is right for your company can be a complex undertaking, but one that we can help with. The benefits provided by each captive are unique to the needs and goals of its owner(s). At the same time, there are a myriad of complex issues that require thoughtful resolution. These issues can come from regulators, fronting carriers or reinsurers. Because we take a consultative approach, we ask a lot of questions to gain a thorough understanding of each client’s unique circumstance so we can offer specific advice. This is particularly important to captive insurance companies and their owners because of the complexity inherent in these programs.
Moore Doeren Mayhew is a leading services provider to captive insurance companies and our understanding of alternative risk, in general, and captive insurance companies, in particular, make us a uniquely qualified service provider. Our clients look to us for advice on everything from concept to formation to operation and best practices.
Our custom tailored alternative risk services include:

  • Feasibility studies – including advice on program design and formation assistance

  • Strategic advisory – including ownership, domicile and re-domestication

  • Accounting, audit and assurance – including US GAAP, IFRS, agreed upon procedures and accounting advice

  • Tax planning and compliance – including structuring and federal and state tax compliance