At Venture Captive Management, LLC, it is our intention to make our clients aware of the financial regulatory compliance issues that impact their insurance company. We have staff members specifically dedicated to compliance. Primarily, we’re well-versed in the insurance regulations of the company’s domicile. Each state and jurisdiction has their own version of a Department of Insurance that dictates how an insurance company should be created, funded, and operated. This starts with the initial application and follows through to the annual audit process. Details of operations are constantly under scrutiny.
Insurance companies are primarily financial institutions and their main function is to protect their owners from financial loss by providing funds to cover damage and/or injury from the owner’s operations. As a financial institution, several outside departments of revenue are involved in the oversight of the company. Whether the insurance company is domiciled on-shore or off-shore, the taxing entity of the owner’s operating company’s domicile requires that their tax regulations be satisfied. At VCM, we are not tax experts, but as captive insurance management experts, we need to be knowledgeable enough to advise our clients when to seek financial regulatory compliance advice. We do not always know what part the insurance company plays in its owner’s overall tax strategy, but we know the insurance company is only one piece of a successful organization. We work with insurance tax experts in every venue that serve our clients to make sure these clients are receiving the kind of advice that supports their business decisions.
Financial Regulatory Compliance for All Industries
Every industry has its own regulation and compliance oversight bodies whether it’s OSHA, the Department of Labor, the Environmental Protection Agency, the Department of Health and Human Services or any of a host of other regulatory authorities. Your insurance company MUST meet the standards for a “real” insurance company or you’ll be fined and/or lose the protection you’ve invested in.
Nowhere is this more important than in the health care business where HHS through Medicare and Medicaid reimbursements has set the standards for what qualifies as an insurance entity. At VCM, we understand the importance of meeting reimbursement guidelines. When our healthcare companies are audited by HHS, their captives managed by VCM have successfully meet the challenges of these State and Federal agencies.
In order to meet the growing demands of insurance regulations and compliance, we are ever-vigilant in researching and meeting the guidelines imposed on our insurance company owners.