The Captive Insurance Companies Association (CICA) has highlighted the importance of using best practices and qualified experts when designing and running a micro-captive in a statement released today (August 26).
The “Information Statement Regarding Micro-Captives” is a supplement to CICA’s Best Practice Guidelines and additional to last year’s CICA statement “Do 831(b)s Right or Don’t Do Them at All”.
Dennis Harwick, CICA president, said: “Well run captive insurance companies play an essential role in risk management and must be designed and operated to achieve risk transfer and risk distribution.”
The information statement claims that the key to the successful use of captive insurance is to follow all best practices, such as having a valid non-tax business purpose and using the guidance of experts with primary, rather than secondary, knowledge of coverages, premiums, risk management, governance, investments, and claims.
CICA issued the statement for its members and the public for improved operation and understanding of micro-captive insurers.
“Our mission to be the best source of unbiased information, knowledge and leadership for captive insurance decision makers,” Harwick said.
Captive Insurance Companies Association, Dennis Harwick, North America