Private Insurance & Alternative Risk Management — The Latitude Plan
A Privately Owned Insurance Company (POIC) is a legal, IRS-compliant insurance company you own that covers your business’s uninsured and under-insured risks — turning premiums you’d otherwise lose into retained wealth. The Latitude Plan is Reinsurance Specialties’ POIC structure, refined over nearly three decades and serving business leaders in 30 U.S. states
If you own or lead a business generating $1M+ in annual revenue, you are likely self-insuring more risk than you realize — and paying for the privilege. The Latitude Plan replaces that hidden exposure with a structure that protects assets, improves risk management, and converts premiums into retained wealth.
What hidden risks are you self-insuring?
Most business owners unknowingly self-insure a large amount of risk — the “below-the-surface” exposures inherent in running a business. With The Latitude Plan, you, the business owner, begin covering the uninsured and under-insured risks specific to your industry and operations.
Consider the U.S. automobile market: in an industry valued at $1.3 trillion, roughly 90% of dealers use private insurance to service their extended-warranty policies — and they retain the underwriting profit. The Latitude Plan brings that same advantage to your business.
Built for Business Leaders Who Think Ahead
For decades, large corporations have used alternative risk transfer strategies to augment commercial P&C policies, reduce insurance costs, mitigate claims, and improve risk management. As traditional property and casualty carriers tighten coverage and raise prices, these benefits matter even more to middle-market companies, groups, and associations.
The Latitude Plan is a premier risk management and risk-financing tool built for forward-thinking companies — the ones that treat managing risk and protecting assets as core business strategy, not an afterthought.
What you gain with The Latitude Plan
Here’s what business leaders gain when they adopt The Latitude Plan:
Asset Protection
As with other insurance company structures, properly-formed POIC have many asset protection benefits.
Taxation
Insurance companies follow special rules with respect to taxes. Statutory tax benefits are available to all insurance companies, including POICs — making the overall structure highly efficient from a tax planning standpoint.
Cost Reductions / Capture Underwriting Profit
Typically, 35%–50% of every premium dollar paid to a commercial insurer covers their overhead and profit margins. A POIC captures that spread, turning an expense into a retained profit center.
Risk Management
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.
Unavailability of Coverage
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).
Cash Flow Benefits / Investment Income
With a POIC, premiums flow into a company you own — not a commercial insurer. Your reserves are invested and generate returns, while strong claims management lets you retain underwriting profits directly. The result is improved cash flow and a meaningful investment income stream.
Underwriting Stability
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.
How does a POIC lower the cost of traditional P&C insurance?
Once your POIC is established, you can self-insure the uninsured and under-insured risks that sit on top of your commercial coverage. Business owners commonly coordinate premium and deductible levels on their commercial P&C policy with their POIC — keeping catastrophic risk with large carriers while capturing the underwriting profit on the rest.
Frequently asked questions
What is a privately owned insurance company (POIC)?
A POIC is a legal, IRS-compliant insurance company you own that covers your business’s uninsured and under-insured risks. Net of any claims, you keep the underwriting profit instead of paying it to an outside carrier. The Latitude Plan is Reinsurance Specialties’ POIC structure.
Does my business qualify?
The Latitude Plan is designed for U.S. businesses generating between $1 million and $1 billion in annual gross revenue. High-risk and high-margin industries are ideal candidates, but the range is broad — medical, dental, legal, construction, agriculture, oil and gas, manufacturing, retail, hospitality, and many more.
Does this replace my existing commercial insurance?
No. It covers uninsured and under-insured risks that fall outside your existing commercial policies. Your auto, general liability, property, and workers’ compensation coverage stays in place with your current carriers.
Is this IRS-compliant?
Yes. The Latitude Plan is an IRS-compliant, 831(a)-designated structure that files annual federal tax returns and is deliberately built to exclude the elements associated with scrutinized 831(b) micro-captives.
CONTACT REINSURANCE SPECIALTIES™
Email: info@reinsurancespecialties.com
For any general inquiries, please fill in the following contact form: