March 03, 2022

Licensing and Captive Management

2 min read

Jarid S. Beck, ACI, ARM; Managing Director, Risk Management Advisors

Captive management dates back centuries to when concepts such as insurance investments and capital began evolving. However, the field's definition, role, and scope have changed. Are you wondering what stages you’ve missed? Here are the details we've gathered for you!

Historical Origins

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 bookkeeping, accounting, regulation, and other theoretical rather than experiential or practical activities. The personnel that previously made up the hierarchy of captive consultants and decision-makers included actuaries, attorneys, vendors, clients, and a massive amount of incoherent billing. Yes, it was pretty miserable, but it was a starting point for something so contrastingly popular and high-profile today!

As the field grew, the position of captive manager replaced the simplistic idea of captive consultancy. A licensed captive manager was the quarterback or centralizer 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.

Modern Captive Management

That being said, the modern approach of 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 companies that hire them to engage with clients as a part of a larger team.

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The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

Jarid S. Beck, ACI, ARM; Managing Director, Risk Management Advisors

Jarid S. Beck is a Managing Director at Risk Management Advisors. He is a career specialist in the design, implementation, and management of alternative risk management (ARM) strategies, including self-insured plans and captive insurance companies. Jarid's diverse insurance background allows him to deliver technical insurance solutions to clients in a wide variety of industries, including construction, real estate, staffing, manufacturing, trucking, and finance. Jarid was awarded the Associate of Captive Insurance (ACI) designation from the International Center for Captive Insurance Education (ICCIE) and the Construction Risk Insurance Specialist (CRIS) designation from the International Risk Management Institute (IRMI). He is a noted authority on using self-insurance and captives as a tool for companies to reduce the cost of providing group medical benefits. Jarid graduated from the University of California, Riverside, with a degree in Business Administration.