June 2014

Last week, I wrote that America needs at least 100,000 captive insurance companies.  Small and mid-size businesses that own their own insurance companies are better prepared for risk and uncertainty.  The loss reserves they can potentially accumulate in their captive insurance company can easily be the difference between thriving, surviving or dying.

After reading a recent report from the Brookings Institute, I’m not even sure 100,000 captives are enough. 

“It’s hard enough to manage and pay for our own problems without being on the hook to pay for someone else’s problems.”

If this statement accurately describes your view of your employee benefits program, than a recent Revenue Ruling by the Internal Revenue Service (IRS) may be good news for you and your business.