With captive insurance, non-insurance companies can establish wholly-owned insurance subsidiaries as captives that insure the risks of the parent.
Why consider Captive Insurance?
Captive Insurance offers significant risk management and financial benefits for non-insurance entities:
- Companies, unable to insure their risks via traditional insurance policies, can establish customized coverage via Captive Insurance.
- Insurance premiums paid to the captive are tax deductible.
- The captive can be located in an offshore tax-efficient vehicle, which is favorable to both the accumulation of premiums and distributions to the parent company.
- Offshore entities can offer asset protection from creditors.
Structuring a Captive:
In order for your captive to underwrite and sell premiums, having access to competitively priced reinsurance is critical. Reinsurance is purchased by an insurance company from other insurance companies to increase underwriting capacity and hedge risk.
SEI’s experience in formulating reinsurance programs for a large number of alternative market insurance entities such as urgent care groups, makes us well positioned to assist those seeking the reinsurance protection. We help them through all aspects of the process and help ensure their long term financial stability.
Is Captive Insurance right for your company? Use the SEI checklist as a guide:
- Are your insurance premiums over $2,000,000 per annum?
- Does your company control losses and have a favorable loss ratio?
- Does your company have the capital and/or collateral to fund a captive?
- Is your management team comfortable with risk and can your company afford a large self-insured deductible?
The SEI team is experienced at Captive Insurance management. Our Captive Group will begin by arranging a feasibility study via a third party. With a letter of credit and capital to fund the insurance premiums, SEI can begin the set-up of a captive for your company. We have strategic partnerships already in place with multiple “A” rated carriers, and our response team is available 24/7. There is no better partner for captive insurance than SEI. Contact us or call 877.237.2481, and speak with a specialist from our Captive Group today.