CASH FLOW MANAGEMENT SYSTEMS

FOR REINSURANCE COMPANIES

INSURING HIDDEN RISK

Most business owners unknowingly self insure a large amount of risk. Many of these are hidden or “below the surface” risks inherent in the operation of a business.

Any material risks can be insured.

If insurance claims are as projected, the reinsurance company (PORC) will retain profits that can be distributed to its owners.
 

FORWARD

For many years, large corporations have used alternative risk transfer strategies to reduce insurance costs, improve risk management. With the growth of small property and casualty insurance companies, these benefits are now available to middle market companies, as well as groups and associations.

For sophisticated companies, managing and financing risk become important aspects of overall business strategy.  A PORC insurance company is the premier risk management and risk financing tool.

We invite you to review this website and contact us to discuss how your organization can obtain the benefits of a captive insurance company or other alternative risk transfer vehicle.

Asset Protection

As with other insurance company structures, properly-formed PORC have many asset protection benefits.

PORC Benefits

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 PORC, the business will benefit from good claims experience. A PORC provides strong incentives to improve risk management throughout an organization.

Taxation

Insurance companies follow special rules with respect to taxes. Statutory tax benefits are available to all insurance companies, including PORC's. Tax benefits alone, however, should not be the reason behind establishing a captive insurance company.

Unavailability of Coverage

Where the commercial market is unable to provide coverage for certain risks (including warranty, pollution, or product liability), or where the price quoted is unreasonaable (such as medical malpractice or construction defect).

Underwriting Stability 

A PORC insurance company is less vulnerable to the cyclical nature of hard and soft markets that affect the conventional insurance market. Thus, a PORC can aid a business that requires accurate financial projections.

Cash Flow Benefits / Investment Income

Apart from pure underwriting profit, PORC's earn investment income on the premiums received. Premiums are typically paid in advance while claims are paid out over time. The PORC retains control over the premiums and surplus..

Cost Reductions / Capture Underwriting Profit

Typically 35% - 50% of the premium paid to a commercial insurer goes to overhead and profit.

Wave

PORC's CAN LOWER THE COST OF INSURANCE

Under this arrangement, the insured business takes a normal insurance deduction, pays premium to an unrelated 3rd party insurance company and has the option of reinsuring the risk into a PORC. 

 

CONTACT

REINSURANCE SPECIALTIES

OUR ADDRESS

4334 NW Expressway, OKC, OK 73122

Email: info@resinsurancespecialties.com
Tel:  405.880.1949

 

Click Here to Find Us

For any general inquiries, please fill in the following contact form:

Thanks for submitting!

Back to Top

BACK TO TOP