For many years, large corporations have used alternative risk transfer strategies to augment commercial P&C policies, reduce insurance costs, mitigate claims and improve risk management. With the changing dynamics among traditional property and casualty insurance companies, these benefits are even more important to middle market companies, as well as groups and associations.
A POIC insurance platform is the premier risk management and risk financing tool. For forward-thinking companies, managing and financing risks (as well as protecting assets) have become important aspects of overall business strategy.
We invite you to review this website and contact us to discuss how your organization can obtain the benefits of a POIC insurance company and other alternative risk transfer vehicles.
As with other insurance company structures, properly-formed POIC have many asset protection benefits.
Insurance companies follow special rules with respect to taxes. Statutory tax benefits are available to all insurance companies, including POIC's. Tax benefits alone, however, should not be the reason behind establishing a captive insurance company.
Typically, 35% - 50% of the premium paid to a commercial insurer goes to overhead and profit.
Conventional insurance typically provides little incentive to improve risk management, as there is no participation in the profitability of the insurance program. However, with a POIC, the business will benefit from good claims practices and experiences. A POIC provides strong incentives to improve risk management throughout an organization.
POICs make sense when and where the commercial market is unable to provide coverage for certain risks (including warranty, reputation, regulatory, product liability, business interruption risks), or where the price quoted is unreasonable (such as medical malpractice or construction defect).
Conventional insurance typically provides little incentive to improve risk management, as there is no participation in the profitability of the insurance program. However, with a POIC, the business will benefit from good claims practices and experiences. A POIC provides strong incentives to improve risk management throughout an organization.
A POIC insurance company is less vulnerable to the cyclical nature of hard and soft markets that affect the conventional insurance market. Thus, a POIC can aid a business that requires accurate financial projections.
Once a POIC has been established, the business owner (Insured) can self-insure their uninsured and under-insured risks. And it is common for the insured business to adjust premium and deductibility with their commercial P&C.
See illustrative image of the many motivating factors aligned with a Privately Owned Insurance Company.