CIC Services, LLC recently attended the Captive Live Conference in Chicago, Illinois, as part of our on-going efforts to stay abreast of shifting trends, strategies and regulations in the captive insurance industry. At this conference, we had the pleasure of listening to Paul Johnson, Director of Captive Operations for Verizon. Paul has headed up Verizon Risk Management since 2003.
This week Governor Bill Haslam of Tennessee signaled his intention to not set up a state-operated health insurance exchange in Tennessee. The Knoxville News Sentinel quoted the pro-business Governor as saying “If you take the politics out of the decision, what you’re left with is this: As the CEO of the state of Tennessee, I’m being asked to make a significant business decision based on information that’s only now dribbling out of Washington and that we appear to have little influence over.” Haslam also noted that the state has received over 800 pages of proposed rules for health insurance exchanges in the last month.
It seems a day doesn’t go by when I hear a business owner say “I’m not doing anything until after the election.”
This indecision certainly makes sense on many fronts, particularly when considering questions like:
One of the benefits of owning a captive insurance company is that it provides a wildly efficient vehicle to fund a buy-out agreement among business owners. Before discussing this unique benefit, let’s review the primary reasons that businesses form their own insurance company – specifically a captive insurance company.