EVENT DESCRIPTION
Fortune Favors the Prepared. Captive Insurance supports growing companies. This course is designed for CPAs and accounting/finance professionals. It is inspired by the book, Fortune Favors the Insured by Noah Miller, ACI, and Randy Sadler. It introduces captive insurance companies as a risk management and asset protection strategy for middle-market companies. The course will highlight critical risks small and middle-market businesses face in the current global and national political and economic climate. The course also covers the impact captive insurance can have on controlling insurance costs, creating a new profit center and building liquidity for business owners. It will address captive insurance trends in the U.S. insurance market. Also, this course addresses the utilization of captive insurance to address core risks, healthcare, warranties and enterprise risks. This course also addresses taxation of captive insurance companies with particular focus on IRC Sections 831(a) and 831(b). In addition to helping lower or control insurance costs and providing an additional profit center and improved risk management to businesses and business owners, captives can also provide tax advantages to their parent companies and owners. Captives originated in the 1950s and were primarily utilized by large corporations to self-insure risk and reap underwriting profits. Today, over 90% of Fortune 500 Companies own one or more captive insurance companies. For decades, captives have also enabled corporations to insure risks that are either impossible or difficult to insure in commercial insurance markets. Captives have become increasingly popular for small and mid-size businesses in recent years. Changes in the tax laws in the 1980s and competition among domiciles have made captives both advantageous and affordable for many mid-market businesses. The course also provides an introduction to Enterprise Risk Management (ERM) for small and mid-size businesses. ERM is a more holistic approach to risk management and focuses on the survival of the business or businesses. Captive Insurance Companies (CICs) often form the backbone or chassis of a small/mid-size business’s ERM program. This course also covers captive insurance companies witha particular focus on “small” captive insurance companies. In addition to providing improved risk management to businesses and business owners, captives can also offer tax advantages to their parent companies and owners.
EVENT OBJECTIVE
1. List at least 3 reasons why fortune favors the insured (captive insurance company owners) 2. Define a captive insurance company 3. Define Alternative Risk Transfer / Alternative Risk Financing 4. Diagram the relationship of a captive insurance company to its parent company (ies) 5. Explain the structure of a Fronted / Reinsured Captive Insurance arrangement 6. Define Enterprise Risks and Enterprise Risk Management (ERM)
