Captive Consulting Services for Agents and Brokers

1. Captive Design and Management
Services

2. JM Niland & Associates
• Founded in 2002 to utilize the Alternative Risk
Transfer Marketplace for the benefit of mid-market
insured
• Owned and Operated by Jim Niland
– 32 years of commercial insurance brokerage experience
– Last 10 years dedicated to captive design and management
• Member of a robust network of insurance service
providers and professionals
• Long track record of successful captive design and
management
Turning Risk into Reward

3. Captives
• “Wholly owned subsidiaries created to provide
insurance to the parent companies” (AICPA Audit & Accounting Guidelines)
• A form of alternative risk financing or self-insurance
• Allows a company to tailor their insurance products
and access the reinsurance marketplace
• Can improve claims handling and provide more
control over premium fluctuations
• Potentially offers tax advantages
Turning Risk into Reward

4. Broker Value Proposition
• Businesses with more than $1 million in premiums
would probably benefit from establishing a captive
and someone will introduce it to them
• Once a company forms a captive they rarely return
to the commercial insurance market
• If you can design a captive for your customer it will
take that customer out of the commercial
marketplace and improve retention of the
customer for the long-term
Turning Risk into Reward

5. JM Niland & Associates Services
• Initial feasibility study and design and develop the
captive on your behalf
• Back-end infrastructure and support to allow you
to propose a captive to your client
• Assist with management of the captive on an
ongoing basis
– Tailored services to provide the appropriate support
– Fees based only on services required
Turning Risk into Reward

6. JM Niland & Associates Objective
To serve as your outsourced customer service
representative for all your customers captive needs
in a more cost-effective manner than hiring a full-
time captive management professional
Turning Risk into Reward

7. Development Process & Timeline
One One-Two Two-Three Two-Three
Life of the Company
Day Months Months Months
Initial Mini- Complete Captive
Captive Entity
Meeting Feasibility Feasibility Entity
Formation
Study Study Formation
• Review of Current • Feasibility Study • Retain Captive Brokers:
Risk Transfer Completed by an Management • Manage customer relationship
Program Actuary Company • Continue to write non-captive
• Coverage • Determine Domicile insurance policies
• Determination of
• Limits • Secure consistent source of
Capital and Annual • Apply for a License
• Loss History revenue for the agency
Premiums Necessary • Establish Ownership
• Availability of Structure JM Niland & Associates:
fronting and • Provide back-room
• Secure Fronting and
reinsurance managements services to
Reinsurance
ensure a happy customer
• Select Claims • Additional services required
Go/No Go Decision Go/No Go Decision Admin Company by the broker
Turning Risk into Reward

8. Contact Information
• For more information about how JM Niland &
Associates can help you grow your insurance
brokerage business through captive management
contact:
James Niland
Email: jim@jmniland.com
Office: (716) 773-0182
Fax: (716) 773-0183
Cell: (716) 818-4361
Turning Risk into Reward