The captive manager functions as an extension of the insurance regulatory team, and will work to coordinate the regulatory approval process.
After all necessary application paperwork and documentation materials have been submitted to the domicile, the regulators will inspect the application, business plan, investment plan, actuarial study, financial statements and documents to support the ownership structure. In most instances, the regulators will engage the services of a 3rd party actuarial firm to further assess the pricing methodology used by the actuary who prepared your study and pricing.
Upon determination from the insurance regulatory team that the requirements have been met, a Certificate of Authority or similar proof of approval is granted on behalf of your captive, giving it the green light to operate as an insurance company.