Transform Business Finances With Captive Insurance Formation Secrets
Benefits of Captive Insurance
One of the primary advantages of captive insurance is cost savings. Traditional insurance premiums often include high overhead costs and profit margins for the insurer. By forming a captive, you can eliminate these expenses and retain underwriting profits. Additionally, captives can provide more stable pricing over time, as they are less susceptible to market fluctuations1.
Captive insurance also offers tax benefits. Premiums paid to a captive may be tax-deductible, and the captive itself can accumulate investment income tax-free until claims are paid out. Furthermore, captives can be structured to meet specific financial goals, such as funding employee benefits or managing healthcare costs2.