We will be the most respected Captive Management Company in the world and set an example for honest communication with Clients, Service Partners and Domicile Regulators. To do this, we will maintain a culture that supports our team members so they can provide extraordinary service while always maintaining direct, honest and timely communication to those we work with. We will honor diversity and embrace new ideas.
Elevate Captives is first and foremost a captive manager. We are not insurance brokers or salespeople. Our business consists of three key areas of focus:
1. CAPTIVE MANAGEMENT
We assist companies in establishing their captive insurance company and running day-to-day operations. This includes all outside activities necessary to run an insurance company such as ensuring the preparation of tax returns, annual audits, compliance reviews, board meetings, etc.
2. CAPTIVE REVIEW
There are times when we are brought in by other professionals to conduct a review of existing captives to ensure they are legally operating as effectively as possible.
3. CAPTIVE RESCUE
This program is designed to rescue captives that are out of compliance, are in jeopardy of being shut down, or are ineffectively operating.
To properly establish a captive insurance company, we follow a defined three step process:
Comprehensive Overview of Risk Exposure
- Enterprise Risk Assessment – Full review of all potential risks within the enterprise currently insured or uninsured
- Data collection & review of all existing commercial policies
- Detailed independent actuarial analysis & cost effectiveness review
- Identify possible insurance & reinsurance structures
- Pricing & 5-year pro forma analysis
- Develop program objectives & business purpose – start with the end in mind
- Select best captive structure & domicile
- 831(a) versus 831(b) analysis
- Regulatory required tax & audit preparation, legal/corporate documents & actuarial report
- Captive Business Plan
- Capitalization & funding requirements
- 5-year pro forma financial statements
- Regulatory filing process
- Engage service providers: Actuary, Legal, Accounting, Audit & Investment
- Submit regulatory application to incorporate and license the captive
- Coordinate and contract with service providers
- Capitalize captive
- Issue insurance policies
WHEN REVIEWING A CAPTIVE, HERE ARE KEY QUESTIONS/TOPICS WE REVIEW:
- Is your captive provider an accredited captive manager?
- Are you working directly with a captive manager or with a middle man who may increase your costs?
- Does your captive manager act as an insurance broker? If so, is that a conflict of interest?
- Does your captive manager only use outside professionals to eliminate conflicts of interest?
- Have you had an independent feasibility study performed? If so was an outside, unaffiliated actuary employed for this process?
- Is every fixed fee included in your captive management fee or will you be responsible for additional fees?
- Does your captive manager have national presence in multiple domiciles?
- Has your captive manager been involved in drafting captive legislation?
- Does your captive management have over 100 years of combined professional experience?
- Is your captive manager completely independent?
- Is your captive manager approved to give CPE and CLE continuing education credits for accountants and attorneys?
- Has your captive manager had articles published on the topic of captives?
To rescue a captive means we help conduct major changes in the operation to fix identified problems. This can involve changing service providers and the insurance program. Sometimes, a captive rescue can even fix past problems. For most clients it is a prospective fix and preparation for required regulatory audits.
TYPICAL KEY AREAS THAT NEED FIXING:
- Client is not in an IRS safe harbor structure and is at risk of an IRS audit which can be expensive and time consuming.
- Client feels they are paying too much in outside costs for their small to medium size captive.
- Client would like to explore redomiciling their foreign captive to the United States.
Our LEVER Process™
The key to success of any good company is to make sure you have a defined process that can be duplicated and expanded. The LEVER Process™ allows us to work with each company in a defined manner to help our clients and their advisors best meet their specific goals and objectives.
LEARN We start our process with a CORE®Review – Comprehensive Overview of Risk & Exposure. We gather information and interview the client to get a thorough understanding of their company’s risks. We also perform a detailed review on their commercial insurance policies.
EDUCATE We use our CORE®Review to educate our clients on where their commercial insurance companies are missing coverage and how a captive can protect them against exclusions they may not even know exist.
VALUE We demonstrate value in a number of ways: direct cost savings, improved cash flow and a better overall risk management program that covers your P&L.
Execute After a client feels thoroughly educated and understands the value of a captive insurance company, they choose to move forward and we execute the captive insurance company for them.
REVIEW We perform quarterly reviews on our captives as well as an annual CORE®Review to ensure risks are covered and cost savings are realized.
Elevate Captives has developed a tried and proven process to assist clients in meeting their goals and objectives - the LEVER process. Our process was inspired by a famous quote by the Greek scientist Archimedes which states “give me a lever long enough and a fulcrum on which to place it and I can move the world.” We give our clients the levers and the folcrums, the tools and techniques to accomplish their goals. Our process allows us to deliver custom fit, turn-key solutions without disrupting the clients day-to-day operations. We do all the heavy lifting.
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After experiencing tremendous losses due to a natural disaster uncovered by my commercial carrier, I knew it was time to form a captive and shopped around for a captive manager...we couldn’t be happier that we chose Elevate.
Communication is quick and effective, documents are always organized and available and my questions are always answered efficiently and professionally.
We chose Elevate because of their reputation in our business community, and their services have exceeded expectations. We trust Elevate.
I have worked with Jerry Messick and the Elevate Captive team since 2012. They have been instrumental in guiding us properly on how to implement and run a captive successfully. The due diligence and proactive service on the part of the Elevate team is unrivaled. Their product knowledge and how to use the instrument to our benefit, while providing sound risk management and compliance principles is another huge differentiating factor for their firm. In addition, the team of experts that Elevate has referred us to in the legal and financial advisory areas has turned out to be top notch. The Captive is only as good as the entire team. Finally, it has to be mentioned that we “just plain like” Jerry and Co.. Friendly, smart and easy to work with. A real pleasure.