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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

A FREE 12-page special report from Captive.com

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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How a Captive Insurance Company Can Save Money for Its Owners

Joel Chansky - Consulting Actuary at Milliman
May 13, 2020

A new Captive Thought Leader Video featuring Joel Chansky, consulting actuary with Milliman, titled "Do Captives Save Money?" has recently been added to the Captive.com video library.

According to Mr. Chansky, to answer this question, we first need to split the captive world into two buckets. There are group captives and single-parent captives, he explains. With group captives, the entire point is to save money.

On the other hand, arguably, captives cost money and don't save money, Mr. Chansky says. There are start-up costs to get the captive up and running, he says, and then there are ongoing annual services and fees that are incurred by the captive. Why would a single-parent captive be an attractive alternative? Mr. Chansky explains that one of the main things that captives allow is for federal tax savings. If the captive is large enough, the savings often offset and exceed the expenses of owning and operating the captive. Lastly, he said, a captive can be used as a potential profit center.

There is no cost to view the videos, and you will find them in the Captive Thought Leader Videos section of Captive.com. More videos will be added in the future.

(Mr. Chansky is pictured above.)

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