The document discusses how captive insurance companies work. A captive insurance company is owned by a parent company and underwrites insurance for the parent's subsidiaries. It allows companies to underwrite their own risks, access reinsurance, improve tax returns, and transfer wealth. Specifically, it presents how a physician-owned reinsurance company (PORC) captive structure could allow physicians to purchase insurance for their practice through the captive, receive dividends from the captive, and generate tax benefits and wealth transfer.
FERMA member association Airmic is grateful to Chartis for producing this guide to captive insurance companies.
Airmic invited partners to select an area of expertise and produce an introductory to intermediate level guide for the benefit of Airmic members. The intention of this guide is to provide members with an overview of the topic and provide information on the practical considerations when managing this important insurance issue.
This guide has been written with a view to providing members with support when faced with such questions as...
- “What alternatives are available to buying cover in the commercial market?”
- “Can we save on premium spend and can we take more control of our risks?”
- “What do we need to do and what will it cost?”
If you already have a captive you may be asked to explain why and what it provides that the commercial market does not.
This is by no means a definitive guide; however we hope it will go some way to answer these questions and to help in your understanding of the world of captives and how they may work for your organisation.
This guide will take you through the life cycle of a captive from initial concept through to the benefit and uses and finally to exit strategies.
In this presentation we will deal with Insurance organizations, their operational structure, insurer’s function and key business terms used in this sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
FERMA member association Airmic is grateful to Chartis for producing this guide to captive insurance companies.
Airmic invited partners to select an area of expertise and produce an introductory to intermediate level guide for the benefit of Airmic members. The intention of this guide is to provide members with an overview of the topic and provide information on the practical considerations when managing this important insurance issue.
This guide has been written with a view to providing members with support when faced with such questions as...
- “What alternatives are available to buying cover in the commercial market?”
- “Can we save on premium spend and can we take more control of our risks?”
- “What do we need to do and what will it cost?”
If you already have a captive you may be asked to explain why and what it provides that the commercial market does not.
This is by no means a definitive guide; however we hope it will go some way to answer these questions and to help in your understanding of the world of captives and how they may work for your organisation.
This guide will take you through the life cycle of a captive from initial concept through to the benefit and uses and finally to exit strategies.
In this presentation we will deal with Insurance organizations, their operational structure, insurer’s function and key business terms used in this sector.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
The Mozilla Hive Learning Network is a city-by-city model of bringing as many of the learning activities as possible together so all the varied groups (libraries, community centres, schools, hack/maker spaces, independent schools and instructors) know that the others exist and what they are doing, and so that learners can map their own pathways through it. Traditionally it has focused on digital learning and youth 12-18, but in the Vancouver branch we are trying to bridge the digital and physical worlds, and open to learners of all ages. This session will be about discussing how to best involve people in their own learning, bridge different groups, whether we can scale what are often very personal experiences so that learners world-wide can participate, and the very central role libraries are playing. In parallel to this, the Maker Foundation has been sponsoring Maker Education meet-ups, bringing librarians, educators, administrators, community centre organizers, makers, parents, and kids together to discuss how to get tools into kids hands to empower them to take charge of their own educations and engage with the world around them.
Note: These slides are not what I talked from. Speaking notes (not verbatim, but what I worked from) are here: https://docs.google.com/document/d/1cpp0xND6Jentid7vH7Yfnnc6vwOPRLx-8T34haRm1rQ/edit?usp=sharing
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
In this risk retention piece, we provide updates to how the final rule under Dodd-Frank applies to CLOs. We cover the permissible forms of risk retention and financing options for the risk retention obligation among other things.
InKnowVision September 2013 Captive Insurance PowerpointInKnowVision
After completing this course, you will be able to:
- Identify the benefits of Captive Insurance companies
- Differentiate which clients would be ideal for a Captive
- List the necessary steps to form a Captive
- Define and address Captive tax issues
- Apply all of the processes to form a successful Captive Insurance company
Captive Insurance Group - A Risk Management Strategycaptiveinsurance
We provide our clients with unique risk management tools & support designed to help them control their costs with private insurance companies.
With extensive experience, our team of dedicated professionals can help deliver the stability and predictability you need in order to lower costs and drive profits.
With creative concepts and an intuitive grasp on our clients’ goals, we design policies that help you strengthen your position in the present and protect you as you head into the future.
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
Client presentation on the benefits of a SMSF and the process for a SMSF to use the borrowing rules to invest in property. Includes the different ways of getting property into a fund and how to finance them.
5. How Do Captives Work?
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
6. How Do Captives Work?
Owner
• underwrite exposed risks
• access reinsurance
• improve after tax returns
• transfer wealth
Pays Premiums
Subsidiary Captive
Underwrites Risk
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
7. How Do Captives Work?
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
8. How Do Captives Work?
Shareholder
Physician
• underwrite exposed risks
• access reinsurance
• improve after tax returns
• transfer wealth
Reg Compliance Policy
Pays Premiums
Practice Captive
Underwrites Risk
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
9. Traditional PORC
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
10. Traditional PORC
• improve after tax returns
• transfer wealth
Car Owns Reinsurance Company
Dealer Receives Dividends PORC
Sales Commission: $20
Sells Policy
Commission: $100
e.g. credit life
Reinsures Risk
Pays Premiums Premium: $80
Profit Commission?
Customer Captive
Underwrites Risk • underwrite exposed risks
• access reinsurance
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
11. Proposed PORC
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
12. Proposed PORC
• improve after tax returns
• transfer wealth
Owns Reinsurance Company
Physician
Receives Dividends PORC
Purchases Policy
Pays Premiums
Reinsures Risk
Patient Captive
Underwrites Risk • underwrite exposed risks
• access reinsurance
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
13. Proposed PORC
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
14. Proposed PORC • improve after tax returns
• transfer wealth
•$800
Owns Reinsurance Company
Physician
Receives Dividends PORC
Purchases Policy
Pays Premiums: $1,000
Reinsures Risk
Patient Captive
Underwrites Risk • underwrite exposed risks
• access reinsurance
•$200
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
15. Proposed PORC
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
16. Proposed PORC
• improve after tax returns
• transfer wealth
Owns Reinsurance Company
Physician
Receives Dividends PORC
Pays Premiums: $1,000
Purchases Policy
Reinsures Risk
Patient Captive
Underwrites Risk • underwrite exposed risks
• access reinsurance
A captive insurance company is simply an insurance company owned by the parent
that underwrites the insurance needs of the parent's subsidiaries.
20. The Wealth Transfer Plan TM
Superior
Asset Protection Tax Mitigation
Investment
Potential
Real Insurance Increase in Wealth Transfer
Practice Revenue