Even though insurance providers will provide most of their own reporting, companies still need to keep a close eye on captives to make sure they are providing the cost efficiencies that make the idea of captive insurers attractive to parent companies. For example, accounting still comes under the domain of the parent company’s responsibilities. In addition, while the captive may perform most risk management functions, the parent company still needs a system that integrates with the captive’s.
The local or improvised tools that may have served a company for years can fail when dealing with captive management. With that in mind, consider some essential tools for use with captive insurance companies.
Risk Management Softwareis specifically helpful for captives because it can integrate risk management in both THE PARENT COMPANY AND THE CAPTIVE INSURANCE COMPANY. Of course, other benefits of an RMIS include access to high-quality data, streamlined risk management processes, flexibility, and ease of reporting. This saves time and produces better results for all aspects of risk management, including reducing hazards and streamlining renewals. For corporations with captives, a quality RMIS is essential to operations in today’s complex and highly regulated business environment.
For many companies, tax time gets even more hectic than commercial insurance renewal time. However, this doesn’t have to be true with today’s tax accounting tools. Like a good RMIS, good accounting systems can ensure the quality, immediacy, and relevancy of all data. These systems also can produce reports for management or even for completing tax forms. Not only can a good tax accounting system help manage captives, they can also provide the right reports to understand and reduce taxes. Potential tax advantages are another benefit of captives that is often cited.
Global access doesn’t just refer to implementing solutions that can get used and accessed from almost anywhere. It also means finding solutions that allow access from all different kinds of devices. Today’s systems are developed with desktop, laptop, and even mobile access in mind. The more convenient that these tools are for all types of users, the more likely they are to get integrated with daily business operations everywhere from the shop floor to the corporate boardroom. Any information system is only as good as the quality, timeliness, and relevancy of the data that it stores, reports upon, and manages.
According to a report commissioned by the Washington State Office of Insurance Commissioner (OIC), 46 US states and territories levy a self-procurement tax (SPT) on insurance obtained from unlicensed captive insurance companies. Furthermore, captive insurance companies can be formed and domiciled in 38 US states and territories. As a captive, make sure you understand the Washington Senate Bill 5315 extensively.
At Ventiv Technology, we understand the pressure that captive managers face today. Increased demands for flexibility in order to keep up with both regulatory compliance and corporate demands require the use of integrated software from a trusted partner. Our INTEGRATED RISK MANAGEMENT SOLUTIONS can handle the demands of both captives and their parent companies, providing an integrated, flexible, and robust solution.
We have been helping large corporation, small businesses, and insurance professionals streamline their risk management functions for over four decades. Learn how we help INSURERS control costs and streamline their processes here. We hope to speak with you soon about the ways our technology can help your unique company.