Ask The Skinny Kid How To Capture More Marbles
Ever since kids began being kids, there has always been something to trade, wager, or play games to win. Jacks, marbles, baseball cards, Pokémon cards, and even Hungry, Hungry Hippos are just some of the games and contests we played against each other throughout our formative years. Usually one particular kid seemed to come out on top. Regardless of how well you played or how skilled you might be, this kid seemed to have the answer to every situation before anybody else. It was as if they had a secret, or maybe somebody whispering the next move in their ear, even before you made your move. That is what captive consulting can do for you. It will make you the kid with the answers who always comes out on top. You will have more marbles than any kid on the block and everyone will want to play with you and you will get to select the business you want because you made the plans and used the resources to make a captive consulting firm work for you.
Hey, that sounds great but really, what does captive consulting do for my business that I cannot do myself or hire someone to do? A good consultant will make your new entity work for you and provide you with the benefits that you originally signed on to receive. Benefits like a more specific policy, better premium pricing, reduced claims management expense, profit from good underwriting decisions, and investment gains are what you signed up for and it takes a strong consultant to make these items a reality for your business.
A captive consulting firm will walk you by the hand through the discovery process, along the red tape precipice, and down the hill of benefits. Executives often hear of ideas they would like to introduce to their company but do not have the knowledge to implement. In fact, many times they do not have the expertise to determine if their company is a good fit for this program. During the initial discovery phase, a quality firm will help to develop financial and business objectives and will develop a planned structure for the potential captive. They will also recommend whether a captive situation is feasible for the company. In the beginning stages, they do an actuarial study or commission one to be done, to examine prior losses and determine which insurance lines would be the best fit for the company captive. The last two stages of the initial phase are to select the professional help needed including legal, actuarial, administrative, auditing and accounting services. The consultant should also help to set up the state regulatory meetings to ensure compliance with the insurance commission of the particular state or states in which the captive will function.
In the final stages of captive consulting, companies must structure and form the new corporation making sure that the proper insurance regulations are in compliance. The company must capitalize their new entity. Many company executives balk at this point when they discover it takes a minimum of $100,000 and usually $1 million or more to capitalize a new captive. If the consulting firm has done their job then this should be no surprise and no problem. The final stage in formation is to jump through the licensing red tape. That is it. Your captive consulting group has now provided you with everything, almost.
The ongoing management of the captive may be the most important step. In the beginning there will be professionals making sure you have followed all the correct steps. The state insurance commissioner will actually be there to make sure it is right. However, when the dust clears, who will make sure it runs correctly and does what it is supposed to do? The final thing your captive consulting firm should do is to provide strong management and leadership for your captive. Good management will make you the skinny kid on the block that ends up with all the marbles at the end of the day.
Visit Captive Consulting for more information or visit our blog at http://cvcourt.com/ask-the-skinny-kid-how-to-capture-more-marbles/.