In this Risk Management article, Randy Sadler from CIC Services explores the challenges businesses face when expressing political views. While consumers expect executives to speak out, doing so can also result in significant losses. Companies risk damaging their reputation if they fail to align with their values, and many consumers may even boycott them. Negative […]
The Risk & Treasury article “Challenging the IRS … and Winning” by Sean King discusses the case of CIC Services, which took on the IRS and won in a landmark Supreme Court decision. CIC Services challenged the validity of IRS Notice 2016-66, which required certain taxpayers to disclose information about captive insurance transactions, and the […]
Randy Sadler, Principal at CIC Services, says in an article for Captive Insurance Times that while Environmental, Social, and Governance (ESG) investing can demonstrate a company’s commitment to making a positive impact, it is essential for businesses to understand and address associated risks using Captive Insurance.
Stronger Business Model
Businesses who implement ERM programs combined with a captive to plan for unforseen risks stand a better chance of surviving, and passing to the next generation.
Improved Cost Controls
Captive owners can leverage their ERM and captive programs to improve their negotiating ability when renewing their commercial insurance coverages.
Profitable captives will see their reserves grow over time to significant sums which can be utilized by their owners for retirement or other life cycle needs.
Advantageous Tax Treatment
Insurance companies are the only entities allowed to expense projected future expense against current-year revenues (claim reserves). Small captives (premiums of $2.2M or less per year) may also elect to only be taxed on their investment income, potentially resulting in substantial tax savings for their owners.
Utilizing your captive to reduce or replace your commercial insurance coverage with policies issued by your captive allows you to capture insurance profits previously realized by the carriers.
Improved Risk Management
Adding a captive and ERM program will result in a higher awareness and enhanced strategies for how your organization thinks about and plans for all risks.
The assets held by a properly organized and managed captive enjoy a very high degree of protection from both the business’ and business owner’s creditors.
Choose the captive manager with a proven track record of fighting for its clients, and winning.Learn more.