Licensing and Captive Management

Captive management is a concept that dates centuries back — back when concepts such as insurance and investments and capital began evolving. However, what we now know as captive management has gone through multiple changes in the definition, role, and scope of the field—wondering what stages you’ve missed out on? Here are the details we fished out for you!

The Captive Manager — A History

The field of a licensed captive manager evolved from an initial form of captive consultancy. In captive insurance and risk management, the history goes down to older and frequently abandoned laws of captive assemblage. This initial phase comprised mostly of bookkeeping, accounting, regulation, and other activities that were more theoretical than experiential or practical. The personnel that previously made up the hierarchy of captive consultants and decision-makers included actuaries, attorneys, vendors, clients, and a massive amount of pretty incoherent billing. Yes, it was quite miserable a starting point for something so contrastingly popular and high-profile today!

As the field grew, the position of a captive manager replaced the simplistic idea of captive consultancy. A licensed captive manager was the quarterback or the centralization of the basic captive insurance, captive consultancy, accounting, and regulatory functions and the more complex tasks that make up the leadership of the captive management paradigm. In addition to the foundational consultation concepts, the role includes strategizing, policy-making, risk insurance, and other specializations.

That being said, the modern from a licensed captive manager does not essentially exclude captive consultants from their jobs. Instead, having licensure as a manager is essentially a regulatory aspect of bookkeeping, accounting, and other functions. However, without a license, captive managers can still seek consultation fees from their clients or from companies that hire them to engage with clients as a part of a larger team.

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