View this article online: https://www.insurancejournal.com/news/national/2019/04/24/524681.htm
CIC Services, LLC, has created a new program help small- to mid-sized companies establish captive programs for their business. The program is designed for companies that would otherwise not be large enough to consider replacing commercial insurance with a captive.
The CIC Services Bundled Program allows an insured business to reinsure their current commercial insurance premiums and retain up to 40% of the premium or risk and also retain their existing insurance broker.
Captive insurance is a formal method of self-insurance that enables businesses and business owners to keep all or a portion of insurance profits. Insurance profits can be invested and carry over from year-to-year, making the captive stronger financially and helping control the cost of traditional insurance. Captives can often receive favorable tax treatment to help them quickly accumulate assets and loss reserves.
Businesses that participate in the Bundled Program are not required to purchase a fractional share of an already established group captive. Each participating business owns and controls 100% of their individual captive insurance company.
Designed to match rate, limits and policy language for existing commercial insurance policies, the insured business or captive owner is able to retain anywhere from 10 to 40% of the premiums and risk. The policies are issued by the A+ rated carrier who also provides integrated reinsurance.
As the captive is wholly owned by the business owner, they also retain 100% of the underwriting profit (premiums received minus the claims and expenses) which can reduce the net cost of the businesses’ insurance program.
The Bundled Program is targeted towards:
CIC Services, LLC is a risk management consulting firm, specializing in the utilization of captive insurance companies (CICs).The company is based in Knoxville, Tenn., and operates nationwide.