#create a captive

In most small captives the Captive owner out-sources the risk management functions to expert Captive Management teams and the Captive Management teams do the bulk of what needs to be done, so, they create a captive. In larger Captives a Risk Manager on the Captive's payroll coordinates with the Captive management team which handles most clerical, accounting and everyday business functions.

Ongoing Captive management costs vary depending mostly on the owner's choice of a domicile for his insurance company, the Captive management firm chosen, and the types and amounts of captives insurance that the insurer will provide. They include domiciliary fees, payments to the Captive's manager, actuary, accountant, and auditor. Many domiciles require local offices. Some require annual meetings at the domicile, and that can necessitate travel expense plus Green Fees, Lift Tickets, Boat Rentals and/or Gambling Expense.