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Incorporating Employee Benefits into Captive Insurance Platforms


Captive insurance companies have been a widely used enterprise risk management tool. Recently many more companies have incorporated employee benefit plans into their captive insurance platforms, for a variety of reasons. Taxand US investigates what should be considered should a business wish to implement such a strategy.

In determining whether a Company should migrate its employee benefits into a captive platform, a company should consider the following:

  • Employee Retirement Income Security Act of 1974 (ERISA) Issues:
  • Risk Diversification
  • Tax Optimisation
  • Return on Reserves
  • Cost Reductions
  • Cash Flow Management

Taxand's Take

Any employer that has a captive platform domestically or offshore that has operated in the property and casualty environment, and is seeking ways to optimise its captive performance, should consider introducing employee benefit risks into the platform. Performing a brief analysis of the current structure and modeling the impact of employee benefit introduction may prove to be a valuable investment.

Read the full announcement from Taxand US here.

Your Taxand contact for further queries is:
Kevin J. Gregson
T. +1 212 763 9670

Taxand's Take Author