captive general

Timing and Sequencing

Like frosting a cake before baking it, getting the order wrong in captive insurance can derail results. Learn why timing and sequencing matter for your captive.

It's All Around Us

It's learned from childhood either by direct teaching or by example. It's really important. Sometimes it can be flexible, sometimes not. There may be deadlines, or not. Precision and details matter. It depends on a wide variety of variables. It helps us be accountable. Some people fight it while others embrace it. It's part of most every business and their development. Sometimes it can be sped up, and sometimes requires patience. "It" is timing and sequencing.

Timing and sequencing in business and captive insurance
Timing and sequencing: events must come in a particular order for the desired result.

Timing and sequencing suggests events or steps have to come in a particular order, or the result may not make sense, or the desired result may not even be possible. For example, you wouldn't want to put the frosting on a cake before you bake it, right?

Usually, the steps come in time order — what happens first, second, third, and so on. More than just sequential order, timing and sequencing involves intent, adjustments, process, and ultimately a finish line.

What It Can Mean

  • "Start"
  • "Begin with the end in mind."
  • "Finish what you start."
  • "Victory."
  • "Process."
  • "Exit."

The common and ultimately most important factor is that whatever task, process, goal, solution, or intent may be, it must have a beginning. Results don't happen by accident. A sustainable, successful outcome over time requires many factors, but they all have a beginning — a start, the first step, launch, or an opening.

Steps in the captive insurance process
Every captive journey begins with education and ends with a successful exit.

Captive Insurance Involves Timing and Sequencing

Like most solutions, captive insurance requires timing and sequencing. From a macro perspective there is:

  1. Education
  2. Implementation
  3. Execution and maintenance
  4. Distribution and redeployment
  5. Exit

Each of these broad steps can be broken down into much more detailed micro timing and sequencing. Because many owners are unfamiliar, even ignorant of captive insurance, at initial glance it may appear complex. However, because business owners own their operating company, they can quickly see how owning their own insurance company makes sense.

Beginning Is the First Step

Before a new company becomes a mature company, it must go through a process — typically the process of time. In order to speed up that process, regulators may require different requirements such as additional significant capital. This is an example of adjusting typical timing and sequencing.

Beginning is the first step. Not implementing or executing — beginning to learn. Being open to learning. Learning enough to take the next step. The motivation of every business owner will be unique to their own circumstances.

Is a captive insurance company risky? Being open to a new-to-you yet 100-year-old, multi-billion dollar industry which protects your operating business and turns premiums into profits makes beginning and the subsequent steps well worth it.

Begin with the end in mind. Begin with a captive insurance company in mind and create your link to security.