Few steps need to be followed for setting up a captive insurance company.There 5 steps that are required to set up a captive insurance company. The steps include:
Step 1—Determine the Likely Captive Structure
Step 2—Conduct a Captive Feasibility Study
Step 3—Interview and Retain a Captive Manager
Step 4—Select a Domicile
Step 5—Preparation and Submission of a Captive Application
The cost of setting up a captive insurance company is not too expensive. The start-up cost of a captive insurance company in Aruba ranges between USD 35,000 to 55,000. The estimates include expenses of Captive Feasibility study, filing of all business plans for captive incorporation and license; domicile fees for captive insurance license application; incorporating of captive in domicile, development of insurance and reinsurance policy forms, premiums and reserves, obtaining of tax ID number for captive. The Annual ongoing operations excluding reinsurance and claims depend on the premium amount and complexity of policies. The agreed upon fees include annual insurance license renewal; annual corporate registration renewal; annual captive management; annual policy issuance and administration and many more.