Very often, businesses owners increase their success, profitability and asset protection by starting or acquiring a second business that serves their primary business. This is often described as vertical integration, and it is often effective because a supplier or service provider is already making a profit serving the parent company.
Primary Benefits of Captive Insurance
In our weekly articles we have discussed the tremendous business benefits of owning a small insurance company – specifically a Section 831 (b) insurance company. Four very common benefits are:
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.