During your initial consultation with the Oxford Risk Management team, we will work with you and your advisors to determine if a captive insurance program makes sense for you. Simply put, this is merely a fact-finding mission to get to know more about you and your company. Knowing what keeps you up at night will help identify the potential risks and exposures that may be appropriate for your captive insurance company. This is a good time to start thinking about how your captive ownership should be structured to achieve your financial goals and objectives. After completing your initial consultation and the Oxford feasibility analyst has gained insight on you and your company, our group will help you and your advisors determine if it makes sense on paper.
Oxford will work with you and your advisors to complete a feasibility questionnaire, which is a pre-application form, of sorts, used to obtain the basic information necessary to prequalify prospective clients. We recommend coordination with the captive manager, actuarial and risk management advisors to recommend policy features, coverage and limits to meet the specific exposures of your operating company. On an informal basis, our team will be able to provide feedback regarding an approximate premium to be paid for the coverage to be provided. We will work with you and your financial team to identify advantages and disadvantages of a captive insurance structure, as well as the many regulatory and compliance requirements you will need to follow.
In many instances, clients are required to pay for a feasibility study upon initiation of the feasibility analysis. It is not uncommon for fees to vary widely with significant, nonrefundable cost. This means that you are asked to pay a large fee just to see if a program would make sense. The Oxford Risk Management team will provide these services without upfront cost, as you are merely in the exploratory stage of the process. Only after the informal feasibility analysis confirms that implementing a captive insurance company is a viable solution and both you and your advisors have given the green light to proceed, will you be asked to enter into an engagement agreement and pay the associated fees.