Managed properly, a captive insurance company can be an effective way of financing the cost of risk. And a key member of a successful captive management team is the actuary. The actuary can help the management team answer the many questions faced by a captive such as:

- Are the premiums adequate?
- How are the premiums allocated?
- Is there sufficient capital?
- Is the reserve adequate?
- What is the appropriate retention?
- What insurance coverage is to be provided?
- Is reinsurance to be purchased?
- What is the appropriate investment strategy?
- What are appropriate financial performance measures?
- How is the health of reinsurers or fronting insurers?
- What are the ratings from the rating agencies?
- What are the data capture needs?
- Are you compliant with regulatory requirements?
- How is the transfer of risk being supported?