Category: Insights

Captive Insurance Programs for Medical Professionals

There is no question that health care and medical professionals in private practice need insurance protection, both for the business itself and for employees. Creating a captive insurance program for medical professionals allows you to create your own insurance agency to provide coverage for common needs including health benefits, property insurance, worker’s compensation, general liability  … Read more

Captive Insurance Management for the Non-Profit Industry

Captive insurance management, whereby a business establishes its own insurance company to self-insure against business risks, can allow organizations to avoid the often volatile pricing that can come when purchasing and relying on traditional solutions available through commercial insurance companies. Many types of businesses across industries can benefit from captive insurance programs, including non-profit organizations  … Read more

Private Equity & Captive Insurance

Private Equity Groups & Captive Insurance   Private equity groups are famously clever when it comes to creating valuable businesses. We know of a private equity group that was unhappy with its total maintenance, repair, and operations spend and it decided to form a new company designed to pool all of the companies in the  … Read more

Fair Market Value, Exit Plans, and Captives

Fair Market Value, Exit Plans, and Captives Exit plans are endemic to entrepreneurship. Everyone who founds a new company has a plan (realistic or not) of whom to market the company to when the time is right to sell. Marketing a business is tough work, especially given that there are literally millions of profitable businesses  … Read more

Fronting Arrangements: A Necessary Headache

Fronting Arrangements: A Necessary Headache Just about any captive involved with controlled lines will end up dealing with fronting arrangements. Controlled lines are lines of insurance that are regulated by the state. The most common examples include workers compensation, healthcare benefits, and automobile insurance. The necessity of the fronting arrangement arises out of the need  … Read more

Captive Insurance as an Alternative Investment

Captive Insurance as an Alternative Investment Alternative investments are a popular way to diversify a portfolio. Examples of alternative investments include private equity funds, distressed securities, and commodities. In general, any investment that is not a stock, bond, cash, or real estate may qualify as an alternative investment. These investments traditionally deliver above-market returns and  … Read more

Tax Shelters and Insurance

Tax Shelters and Insurance All captive managers in the United States are preparing to file their responses to the IRS’s Notice 2016-66. Much has been said about the Notice all over the internet. While we can debate endlessly about the disclosure requirements in the Notice, the reality is that no one really has any idea  … Read more

Agency Captive Insurance

Agency Captive Insurance   Captive insurance offers fantastic financial opportunities for insurance agents and brokers. An agency captive provides an opportunity to increase revenues beyond the traditional commission and profit sharing arrangements between carriers and agents. An agency captive allows the agency to capture a portion of the underwriting profit and investment income. Agency captives  … Read more

The Value of an 831(b) Captive

The Value of an 831(b) Captive   Now that we are in the middle of the IRS’s witch hunt against 831(b) captive insurance companies, it is a good time to reflect upon why these types of companies exist in the first place. Whether the Service realizes it or not, the insurance industry is changing just  … Read more

How Does a Protected Cell Company Work?

How Does a Protected Cell Company Work? Captive insurance companies are powerful risk management tools that add tremendous value to their parent companies. As more middle market companies incorporate these alternative risk management vehicles and realize the value inherent to them, these companies develop an advantage over their peers without captives. Consequently, the demand for  … Read more