The 60 Day Captive Insurance Countdown Starts Now
Today, we are officially beginning our 60 Day Countdown for the formation of a captive insurance company in 2021. The good news is there is still time to form a captive insurance company in 2021. But…the clock is ticking.
2020 clearly demonstrated that small and middle-market companies need more insurance AND more money, and captive insurance is the only strategy that delivers both simultaneously. Captives managed by CIC Services came to the rescue of middle-market companies in 2020.
Read More about it here.
Also, 2021 has been an exciting year for CIC Services and the captive insurance industry with two major court victories against the IRS. CIC Services sued the IRS over its unlawful notice 2016-66. In 2021 the case went all the way to the U.S. Supreme Court, where CIC Services triumphed 9-0 against the IRS. In September of 2021, a U.S. District Court granted CIC Services an injunction against the IRS and its unlawful notice 2016-66.
Read More about it here.
Proper formation of a captive insurance company requires adequate time for a thorough risk assessment, underwriting, a feasibility study including actuarial work to price insurance policies and develop a pro forma, corporate formation, licensing, and the issuance of policies. It’s important to start the process soon!
A captive is a choice to own your own insurance company. Captives can be employed to:
- Replace commercial insurance
- Insure enterprise risks
- Insure warranties
- Issue performance bonds
- Insure employee benefits
- Insure Bundled Program risks
- Address any combination of 1 through 6 above
Benefits of captive ownership include:
- Improved risk management
- Improved cost control
- Improved business practices
- Asset protection
- Insurance profit
- Wealth accumulation
- Favorable tax treatment
If you’re considering forming a captive in 2021, let’s start the conversation.
Watch our webinar recording: