Building the right team: A three-step approach
- Evaluate and select the risk-management advisor – You have to hire a risk-management advisor with a strong reputation in the insurance market and who has extensive experience helping companies in multiple industries develop captive insurance programs that are successful over the long-term. When choosing an advisor in the alternative risk marketplace, it is vital to use an advisor with a firm and deep understanding of insurance and the role of risk transfer. Many of the advisors are not licensed in Property/Casualty insurance and therefore have limited experience in the very risk they are helping to insure.
- Evaluate and retain specialty service providers - One important service the consultant will provide once retained is helping you assemble the other key players on the team. As has been discussed, these players will include professionals to handle audit, legal, actuarial and tax issues and analysis. These professionals should also be unbiased and well experienced in the captive industry. Once the captive is formed, you’ll need additional professional support such as a , law firm and banking relationship located within the .
- Evaluate the consultant’s system for measuring performance - Make sure the consultant has a system for measuring performance, for keeping the process on track and providing you solid feedback. Ask the consultant how these steps will be handled through the process and the formation and operation process.