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Captive Insurance

Ryan is a U.S. Captive Services Award winner. This annual designation is bestowed upon select companies providing innovation, commitment, and expertise in various captive insurance-related disciplines.

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Captive Insurance Services

Captive insurance companies are often overlooked as a strategic initiative by finance and tax professionals. For example, natural disasters are easy to understand and relate to. But what about the risks business owners face every day from cyber-warfare, workplace safety, trade and goodwill within the multimedia landscape, or even economic challenges resulting from a global pandemic?

Creating a captive insurance company allows business owners to participate in alternative risk management—a form of risk retention for perils not efficiently covered by commercial insurance. Once established, the captive operates like any commercial insurance company and is subject to state regulatory requirements, including reporting, capital, and reserve requirements. However, the insurance premium dollars are retained within the business enterprise or the same “economic family,” thereby increasing investment income on unpaid loss reserves, capital, and surplus.

The federal courts have ruled that a captive insurance arrangement will be respected as a bona-fide insurance arrangement, including for purposes of federal income tax treatment, if the risk transferred is one of economic loss that is not merely an investment risk or inevitable future cost of the insured. But intense scrutiny of the captive structure, particularly around the treatment of tax, dictates that the structure be properly constructed. Only companies that identify and insure true insurance risks will ultimately enjoy the significant financial benefits afforded to captive owners.

Ryan provides the qualified and comprehensive support required to create and manage a well-structured and credible captive insurance company. Our experience is supported by a U.S. Captive Services Award, the annual designation bestowed upon a select group of professionals providing innovation, commitment, and expertise in various captive insurance-related disciplines.

Throughout the engagement, and in coordination with a team of licensed, third-party actuaries, we assess client data and business goals and assist clients in determining the viability of a captive based on costs and benefits. Based on these findings, we build a detailed captive business plan, strategically selecting and implementing the best structure to meet our client’s unique risk management needs. We coordinate with third-party actuaries who assist clients in designing appropriate insurance coverages for their business. Our professionals stay involved through the entire process required to incorporate and license a captive, including:

  • Preparing and filing all applications for regulatory compliance;
  • Ensuring the captive structure aligns with your alternative risk management needs;
  • Coordinating underwriting and actuarial support;
  • Providing ongoing operational support, accounting, and claims administration; and
  • Coordinating for the preparation and filing of all necessary tax returns for the captive insurance company.

Ryan Expertise

The Ryan team is very knowledgeable and provided accurate information. They are very professional and are always available to answer questions or provide documentation when contacted.
Regulatory & Compliance Administrator Major Insurance Company
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