Sean King, JD, CPA of CIC Services was recently interviewed by Captive Insurance Times (CIT) on a recent release from the GAO regarding offshore transactions and captive insurance. Sean points out that the recent release from the GAO provides “no new information,” and the IRS continues to refuse to provide guidance to the captive insurance industry. Even though Congress has provided clear guidance on captive insurance, the IRS instead prefers to create fear, uncertainty and doubt because it knows the vast majority of captive owners would follow any lawful and reasonable guidance published.
Listen to CIC Services’s own Randy Sadler as he discusses key strategies for optimizing your finances with a captive insurance program with the host of the Profit Coach 4 You podcast. In the episode, you will hear practical tax-saving techniques and financial planning insights. Click play on the video below, or click here to read […]
The recent article published by Strategic Risk, “Opinion: Why unconventional industries require an innovative approach to risk and insurance,” by Randy Sadler, principal at CIC Services, highlights how unconventional industries like 3D printing, space mining, and cryptocurrency may find it difficult to access traditional insurance. Just like unconventional businesses require a more tailored and comprehensive […]
The recent article published by Captive International, “Captives Power From Strength to Strength,” by Sean King, principal at CIC Services, highlights that the IRS is not interested in providing the captives industry and taxpayers with actual guidance. On the contrary, he said: “Their goal is to suppress the Congressionally-incentivised captive insurance industry by creating and […]
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.