The Internal Revenue Service has scored some notable victories against abusive micro-captive insurance tax shelters in recent years, with settlement offers to some 200 captives last September earning it floods of cash from captives eager to end their uncertainty. For those that did not receive such a letter however, the 831(b) scandal is far from over, as Solomon Teague reports.
A captive can be a useful tool to help a company manage its risk, but they are not suitable for everyone. Scott Bailey from Carr, Riggs and Ingram outlines some of the factors prospective captive owners should consider before taking the plunge.
It may come as a surprise to many insurtech companies, but it is probably easier to build a captive insurance company than to partner with a commercial provider. The insurance industry is awash with outdated firms, IT systems and business practices, which often makes it an ineffective partner, says Zach Finn of Butler University.
The commercial insurance model is a zero-sum game between supposedly collaborating insurers seeking competitive advantage with the end customer. Owning a captive puts the insured at the heart of the value chain, dramatically changing the product-service dynamic, says Allan Rodrigues at Captive Insurance Solutions NZ.
Active shooter/workplace violence insurance programmes vary widely. In the last of a four-part series about the impact and aftermath of an active shooter event, Paul Marshall of McGowan Program Administrators outlines 11 things companies should look for when considering which policy to buy.
With insurance renewals becoming more challenging for brokers and risk managers, formalised risk retention can improve negotiating strength with commercial insurers and secure improvements in price, terms, and conditions, says Marsh’s Derek Bridgeman.
Value-based healthcare can deliver sizable new sources of revenue, but there is also a real risk of meaningful losses. Fortunately, new insurance programmes and captive insurance models are emerging that enable providers to pursue these new revenue opportunities without taking on more risk exposure than they can tolerate, says Dave Terry of Archway Health.
Udo Kappes is chairman of the European Captive Insurance and Reinsurance Owners’ Association. Captive International talked to him about the outlook for the market, regulation and why people should not be so hung up on numbers.
Towing companies in the US have traditionally found the process of procuring insurance a frustrating experience. The coverage on offer rarely suited their specific needs, and it was expensive. The solution was to create TowCap Premier, the towing industry’s first group captive. Solomon Teague reports.
Governments have traditionally been deeply suspicious of marijuana. But with US political leaders finding $1.8 billion and (no pun intended) growing in tax revenues, attitudes are changing. Global governments looking to capitalise on this emerging tax base will bring forward legislation to ensure they capture a share of the cannabis goldmine, says Jeana Nordstrom of Capital Security.