RIMS and Ernst & Young Take on Captives in Risk Insights
White paper explores the risks and benefits of forming a captive
NEW YORK (May 24, 2010) â The Risk and Insurance Management Society (RIMS) and Ernst & Young announce the release of Thinking of Forming a Captive? Donât Get Caught Short, the latest installment of Risk Insights, their ongoing series of white papers. The paper weighs the pros and cons of forming a captive and guides the risk professional through the evaluation process.
The use of captive insurers to insure the risks of a parent group has grown in popularity worldwide and, for some companies, is a major component of their risk management and financing strategy. With many factors in play, including a companyâs size, risk appetite and risk exposures, to determine whether forming a captive is the right answer, risk managers should know how to conduct a captive feasibility analysis. Thinking of Forming a Captive? Donât Get Caught Short leads the risk manager through preparing for, conducting and evaluating such an analysis.
The paper delves into:Â
- how to determine where a captive could reasonably participate in the assumption of risk
- the process of managing the capital necessary for forming a captive
- steps for conducting an actuarial analysis
- how to perform a relevant tax analysis
- alternatives to captives, and much more.Â
The paper was authored by James Bulkowski, an executive in the insurance and actuarial advisory services practice of Ernst & Young LLPâs Financial Services Office.
This issue of Risk Insights is available to RIMS members free of charge here. Launched in 2008, this white paper series will continue through 2010.
Note: Members of the media who would like to obtain a copy of the paper may contact Amy Benson at abenson@RIMS.org or (212) 655-6059.
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As the preeminent organization dedicated to advancing the practice of risk management, RIMS, the Risk Management Society™, is a global not-for-profit organization representing more than 3,500 industrial, service, nonprofit, charitable and government entities throughout the world. Founded in 1950, RIMS brings networking, professional development and education opportunities to its membership of more than 11,000 risk management professionals located in more than 60 countries. For more information on RIMS, visit www.RIMS.org.
For more information, contact:
Josh Salter, RIMS communications manager, (212) 655-6059 or jsalter@RIMS.org