Mission Matters Business Podcast with Adam Torres Turning Risk into Profit Through Captive Insurance Companies
Jun 28, 2024
Jarid Beck, Co-founder and Managing Director at Risk Management Advisors, dives into the transformative world of captive insurance companies. He explains how businesses can benefit from tailored risk management strategies, sharing examples like significant savings in the construction sector. Beck discusses the streamlined setup process, emphasizing strategic planning for smooth transitions. He also highlights the importance of understanding diverse business cultures and effective budgeting, empowering entrepreneurs to leverage shared experiences for financial success.
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Construction Company Savings
- Jared Beck shared a story about a CFO of a New York construction company.
- The CFO, paying $5 million yearly for insurance, found a captive solution saving $2-3 million annually.
Financial Advantages of Captives
- Captive insurance offers underwriting profit and financial efficiency due to its unique tax treatment.
- Reserves for potential claims grow tax-deferred, unlike regular business profits.
Who Should Consider Captives?
- Businesses paying $750,000 or more in insurance premiums could benefit from a captive.
- Captive solutions are now available for group medical for companies with 100+ employees.