Benefits of a Captive Insurance Company
Risk Management
Captive insurance companies provide their
owners with the following general risk management
benefits:
- Access to insurance products not readily available from
standard insurance brokers
- Ability to custom-tailor insurance policies for a specific
business or industry
- Stability of premium pricing and flexibility of premium
payments
- Assurance that desired coverages will be available and will not
be cancelled
- Control over policy underwriting including limits and
deductibles
- Streamlined and expedited claims processing
- Enhanced loss prevention through increased incentive to reduce
claims
- Rapid accumulation of a financial war chest to protect your
business
Wealth Management
Captive insurance companies can provide
their owners with the following general wealth management
benefits:
- Opportunity to recoup underwriting profit
- Favorable tax treatment under section 831(b) of the U.S. Tax
Code
- Wealth transfer when the captive is part of a comprehensive
estate plan
- Asset protection and removal of wealth from the reach of
creditors
- Wealth accumulation as the captive invests its reserves and
surplus