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...rse firms) to self-insurance and captive insurance (for firms seeking the ult... magazine for risk and insurance professionals.

... name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back Pitfalls to Avoid in Running a Captive Premium Finance Company 4/3 /2018 12:00:00 AM by CompleteMarkets Editor , Chris Farfaras This content has not been rated yet. You've made the decision to form a captive premium finance company. You've also chosen to run your operation either by ... to a third-party vendor or using software to run the operation in house. Chances are that your lending arrangement and state licensing are also in place. You're now ready to get started and you want to book your first loan. Before you open your doors for business, take a moment to consider some important factors in this new frontier of insurance premium financing. PRICE AND TERMS Building a sound game plan and understanding the components of your business are critical. The fundamental choice of the right interest rate, for example, is an ... factor in determining your overall return. Make sure that you charge an appropriate APR that will not only cover your borrowing costs, administrative overhead, and other expenses, but also provide a healthy return on your investment. The down payment and installment terms you offer will affect your overall return. For example, playing it safe and offering a 25% down payment and nine installments on your business will keep you above water in most circumstances. In specific cases (i.e. certain coverage types or geographic regions) you might be able ...

... name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back Pitfalls to Avoid in Running a Captive Premium Finance Company 4/3 /2018 12:00:00 AM by CompleteMarkets Editor , Chris Farfaras This content has not been rated yet. You've made the decision to form a captive premium finance company. You've also chosen to run your operation either by ... to a third-party vendor or using software to run the operation in house. Chances are that your lending arrangement and state licensing are also in place. You're now ready to get started and you want to book your first loan. Before you open your doors for business, take a moment to consider some important factors in this new frontier of insurance premium financing. PRICE AND TERMS Building a sound game plan and understanding the components of your business are critical. The fundamental choice of the right interest rate, for example, is an ... factor in determining your overall return. Make sure that you charge an appropriate APR that will not only cover your borrowing costs, administrative overhead, and other expenses, but also provide a healthy return on your investment. The down payment and installment terms you offer will affect your overall return. For example, playing it safe and offering a 25% down payment and nine installments on your business will keep you above water in most circumstances. In specific cases (i.e. certain coverage types or geographic regions) you might be able ...

...insured public entities or pools, captive insurers, and risk-retention groups....mount may be 10% to 20% of the total premium.) Insurer underwriting profi...

...Agents and brokers can access the captive market either by establishing a captive for a corporate client or renting a captive to facilitate international exposure...res: Auto, Health, Marine, Products Liability, Workers' Compensation, and so f...

...ble Self-insurance  Captive insurance ...

... to guaranteed cost. In the coming years, risk managers may find middle excess layers and moderate aggregate limits more appropriate win-win solutions that are preferable to all-or-nothing risk positions. As organizations retain greater levels of risk, the need to manage that exposure becomes paramount. Using captive insurance subsidiaries may become more prevalent in the years ahead. In addition to potential tax benefits, captive arrangements offer substantial flexibility to meet changing risk financing needs. As a separate corporate entity, a wholly owned captive also enhances an organization's management perspective. Trend 3 ... other alternative risk financing mechanisms will be more widely used in the early 2000s. Perhaps a company's goal for alternative rating plans will be to find the right level of risk to retain. Previous trends in Workers Compensation pricing had sometimes fluctuated between the extremes - from standard premium plans to high excess-of-deductible layers and back to guaranteed cost. In the coming years, risk managers may find middle excess layers and moderate aggregate limits more appropriate win-win solutions that are preferable to all-or-nothing risk positions. As organizations retain greater levels of risk, the need ... Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Workers Comp Underwriting Trends 4/30/2013 12:00:00 AM by CompleteMarkets Editor , David Blessing This ...

...exposure becomes paramount. Using captive insurance subsidiaries may become mo...ate corporate entity, a wholly owned captive also enhances an organization's m...

... earn the investment income on reserves that was formerly earned by an insurance company. ALTERNATIVE RISK FINANCING OPTIONS Insurers have developed many colorful titles for what amounts to a handful of alternative risk financing techniques. Methods range from guaranteed cost (for risk-averse firms) to self-insurance and captive insurance (for firms seeking the ultimate in control over the risk management and financing process) . These techniques include: &# 160 Guaranteed cost Retrospective rating Large deductible Self-insurance Captive insurance This chart summarizes the main features of these alternatives: Analysis of Key Risk Financing ... 1 2 4 5 3 Maintenance 5 4 3 2 1 Organizational Control 1 2 3 5 5 Guaranteed cost insurance. Guaranteed cost remains an attractive option, particularly in a highly competitive insurance market. "Guaranteed cost" means that the insured pays a one-time premium based either on a rate (for example, per payroll or property values) or a flat amount. The insurer assumes the loss obligations covered under the policy. In some circumstances, guaranteed cost can be the best of all worlds. A specially tailored program ... Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Alternative Risk Financing: Not Just For Fortune 500 Companies 4/30/2013 10:45:23 PM by ...

... division of major companies, offering creativity, capacity, and flexibility, enabling the agent or broker to approach accounts on a broad basis. Examples include Aetna, AIG, Chubb, Great American, The Hartford, and Reliance National. Agents and brokers can access the captive market either by establishing a captive for a corporate client or renting a captive to facilitate international exposures, self-insured retentions, and a potential profit center. The international market has captive facilities in such locations as Bermuda, Barbados, Ireland, Guernsey (the Channel Islands ... are domiciled. However, most insurers are federally regulated, which allows them to operate nationwide. U.S. insurers are required to obtain licensing in each state in which they do business. Some Canadian provinces, notably Ontario and Quebec, impose a sales tax on insurance premiums. This means the broker has to collect this tax and remit it to a provincial regulatory department. There are also rigorous requirements on brokers regarding the placement of insurance with non-licensed insurers, which could affect your international accounts. Some significant differences are found in such ... lines as No-Fault Auto insurance, Environmental coverage, and Workers' Compensation. For example, since there isn't subrogation under Workers' Compensation for most industries in Canada, Comprehensive General Liability in the construction field does not have the same exposures as a similar situation in the United States would. TWO PEOPLES DIVIDED BY A COMMON LANGUAGE Agents and brokers should also consider cultural differences between the United States and Canada that can affect the conduct of business across the border. For example, the United States tends to be more forms oriented. Accounts ...