Insurance Security Solutions

Did you know that self-funded employers regularly transition to benefits captives? Benefits captives are often viewed as a destination for only fully-insured or level-funded employers. However, we are seeing more and more companies who are already partially self-funded decide a captive is a safer long-term play. Why is that? A few things: 1. Large claim volatility has increased substantially. As an example,Tokio Marine HCC has cited a 14.5x increase in the frequency of $2M claims in the last 3 years. 2. Benefits Captives allow you to plan on a multi-year basis. With No New Laser and lower Rate Cap protections that cannot be removed like in the traditional stop loss market, captives offer more stability in budgeting over multiple years. 3. Benefits Captives are not just about better stop loss. Captives like ParetoHealth use their size and scale to procure better claims solutions on behalf of their risk pool. Claims usually make up 60-70% of plan spend, and buying cheaper stop loss doesn't solve for that. Rising medical trend, and subsequently higher leveraged trend, are making captives a much more attractive long-term home for small to mid-sized employers than self-funding in their own. In the same way you'd prefer to be on a giant cruise ship versus a small bass boat when the seas get rocky, a captive is a safer bet when stop loss markets harden and the cost of care runs amuck. So, are they right for everyone? No! Captives require a different mindset, and a desire to actively participate with like-minded employers to solve problems. If you're a self-funded employer, or a consultant who manages them, then there's never been a better time to consider a captive. -Spencer #captives #benefitscaptives #captiveinsurance #selffunding #selffundedwithspencer

🚀 #MarketMapMondays – INSURANCE VERTICAL AI OPPORTUNITY 🚀 Insurance isn't just massive (a whopping $9 trillion globally!), it's also among the most structurally inefficient and least digitized sectors—surprising, given its incredible wealth of data (2.5 billion gigabytes generated every year!). Yet, it remains a chronic under-investor in innovation: only 9 insurers rank among the world’s top 2500 R&D spenders, and P&C/life insurers reinvest merely 5% of written premiums into IT, compared to banking’s benchmark of 8%. Check out this insightful thesis and market map by Teddy Himler and Jean-Paul Guité from Optimist Ventures on the huge AI opportunities within insurance (link in comments). Interestingly, previous tech waves (cloud, mobile, SaaS) left insurance largely untouched, creating minimal enterprise value. But now, strong macro factors—like unprecedented catastrophic events, mass retirements, and outdated legislation—are making AI adoption essential. Here are 4 key opportunity areas for startups in insurance: 1️⃣ Automation of high-cost, repetitive tasks untouched by traditional software (e.g., customer service, policy comparisons, applications, claims). 2️⃣ Breaking data silos with system interoperability. 3️⃣ Building vertical-specific, fine-tuned AI models. 4️⃣ Capturing value through proprietary data access and workflow ownership. Optimist Ventures also identifies 4 exciting startup archetypes driving Insurtech 2.0: 🔹 Emerging Risk Specialists: AI-native startups modeling, pricing, and underwriting underserved risks (e.g., Koop for Frontier Tech, Charter for Space, Shepherd for Construction, Kettle for Climate). 🔹 Insurance Ontologies: Platforms akin to "Palantir for insurance" (e.g., 9Root, Outmarket AI). 🔹 AI Co-pilots & Automation Layers: Ready-to-deploy AI agents for underwriting, claims handling, customer communication, and fraud detection. 🔹 AI-native Distribution Infrastructure: API-first solutions simplifying quoting, binding, and policy administration (e.g., Herald, Curacel, Covie). At Antler India, we’re particularly bullish on Insurtech, backing multiple startups already—including Covrzy (Ankit Kamra), Inka Insurance (Vaibhav Kathju), Infer (YC S21) (Vaibhav Saxena, Urvin Soneta), and another in stealth. If you're building something exciting in this space, let’s chat! Drop a comment or DM. With Rajiv Srivatsa Nitin Sharma Jasnoor Gill Karan Prasad Sankalp Sharma #Insurtech #AI #Startups #InsuranceInnovation #VentureCapital #AntlerIndia #TechTrends #InsuranceTech

Being a generalist commercial insurance agency can actually limit you more than a vertical-specific agency. WTF. That math… ain’t mathing. But hear me out. On paper, generalists look bigger. “Hey, we can insure 100+ different industries!” But in practice, most generalists get pigeon-holed by geography. Their positioning almost always comes down to location: “Best Commercial Insurance Agency in Arkansas” “Top Risk Management Specialist in Indiana” And that’s fine if your goal is purely local dominance. But here’s the problem → outside of your state, your brand doesn’t translate. No restaurant owner in Florida cares that you’re the “Best Agency in Arkansas.” That means your TAM isn’t 34.8M small businesses nationwide. It’s maybe 300,000–400,000 inside your state lines. Which is still solid, but capped. Now compare that to a vertical agency. Let’s say you pick restaurants. You’re no longer tied to one state, you’re tied to a type of business. And restaurants exist in every city, every state, every zip code. Do the math: “Utah Commercial Insurance Agency” = ~350,000 prospects. “Restaurant Insurance Agency” = ~749,000 prospects across all 50 states. And restaurants are just one example. Think about contractors. Trucking. Real estate investors. Cannabis. Each of these verticals has millions of businesses spread coast to coast. So instead of being seen as the “best in Arkansas,” you’re positioned as the go-to everywhere for one type of business. THIS is how you scale. Not by stretching your geography wider, but by going deeper into one industry and owning it. Generalist positioning = capped by location. Vertical positioning = scale without borders. So no, vertical isn’t limiting. It’s the opposite. It’s the unlock.

Going all-in has transformed Indico from generic IDP vendor in a sea of me-too products to a fast-growing, laser-focused solutions provider. Last week I caught up with Indico's Tom Wilde (CEO) and Jeremy Stinson (SVP Marketing) and they shared some fascinating insights into how placing all their chips on the insurance industry has also transformed the product into an agentic insurance decisioning platform. The team walked me through the new Agent Studio using insurance claim submission examples. IDP is still an important piece but not the main thing anymore. Indico also added new workspace functionality for underwriters and other insurance knowledge workers after the IDP workflow ends. Doubling down on the insurance industry has paid off in spades, with higher growth, better margins, and a clear product direction for the team. * ~70% of annual recurring revenue (ARR) now comes from insurance customers. * Insurance represents ~95% of the sales pipeline. * Average contract value (ACV) has doubled. * On track to grow ARR by 50% this year. Indico’s transformation from a generalized IDP platform to a focused insurance decisioning solution is a stellar example of the strategic clarity and discipline we champion. By going all-in on the insurance vertical, the company didn’t just refine its product. It redefined its identity, aligned its technology, and changed the user experience to deliver data-driven decisioning. Read more and get the Deep Analysis in my new blog "Going All In at Indico". https://lnkd.in/eiRCddBG Indico Data

Let’s understand Captive Reinsurance: Where a company (usually a large corporation) establishes its own insurance company, known as a captive insurance company, to insure or reinsure the risks of its parent company. The primary goal is to control costs, improve risk management, and have more flexibility in managing the insurance program. How it works: A captive insurance company typically writes insurance policies or takes on reinsurance risks from the parent company. It could reinsure the risks of the parent company’s various business units or its subsidiaries. The advantage of captive reinsurance is that it allows the parent company to retain more control over its risks, such as pricing, coverage terms, and claims management, while also benefiting from potential cost savings or profits from the captive insurance operations. Example of Captive Reinsurance: Let’s say Company XYZ, a global manufacturing company, faces substantial risks, including property damage, liability. To reduce the cost of purchasing insurance in the open market and to gain more control over its risk management, XYZ decides to set up a captive insurance company, called XYZ Captive Insurance Ltd. Step 1: XYZ Captive Insurance Ltd. is established as a subsidiary of Company XYZ. Step 2: XYZ Captive Insurance Ltd. purchases a reinsurance policy to cover some of the risks that the parent company (XYZ) faces, such as a potential fire at its manufacturing plant. Step 3: If the insured event occurs XYZ Captive Insurance Ltd. will cover the claim, and the captive company may also seek additional reinsurance from third-party reinsurance companies to cover larger or more catastrophic risks. By doing this, XYZ gains more control over its insurance costs, claim settlements, and the overall risk management process. The captive insurance company can also be profitable if it takes on risk wisely and maintains appropriate reserves. #reinsuarncesme #insurancesme #insuranceproductowner #insuranceconsultant #reinsuranceconsultant #insurancebusinessanalyst

What is Captive Insurance?💼 Captive insurance is a strategic and innovative risk management tool that involves the creation of an in-house insurance company, known as a "captive," to provide coverage for the risks faced by its parent organization and affiliated businesses. Unlike traditional insurance, captives empower companies with greater control, flexibility, and customization in their insurance programs. 🏢 🔑 Key Benefits: 1️⃣ Customization: Captive insurance allows businesses to craft tailor-made policies that precisely match their unique risk exposures and industry-specific challenges. 2️⃣ Cost Efficiency: Captives provide the opportunity for significant cost savings by eliminating unnecessary markups and administrative fees often associated with conventional insurers. You gain direct access to the insurance market and retain the profits generated from sound underwriting and claims management. 💰 3️⃣ Risk Control: Captives enhance risk management capabilities by granting visibility and control over claims, risk assessments and loss prevention efforts. This hands-on approach empowers businesses to proactively manage risks, identify trends and implement targeted risk mitigation strategies. 4️⃣ Financial Rewards: Captive insurance can offer substantial financial benefits beyond traditional insurance arrangements. When the captive's underwriting results are favorable, the surplus can be retained by the parent company, providing an additional revenue stream. Moreover, captives often come with potential tax advantages, contributing to a stronger financial position for the organization. Unlocking Opportunities: While captive insurance has long been embraced by large multinational corporations, it is now gaining popularity among mid-sized and even small businesses. These organizations recognize that captives not only provide superior risk protection but also create opportunities for growth, financial stability, and strategic planning. 📈 #captiveinsurance #insurance #insuranceindustry #riskmanagement #finance

Despite market softening in various lines of coverage, including D&O, since a string of difficult years during the pandemic, companies continue to be interested in exploring risk solutions like captives as an alternative to the traditional insurance market. Captives come with many potential benefits, but they do not work for every policyholder and must be designed, created, and implemented correctly to fully realize favorable tax treatment, improved cash flow, underwriting flexibility, reduced operating costs, and increased control of claims. Through that lens, I am always interested in situations where use of captives takes a turn for the worse, particularly with respect to IRS challenges to deductibility or other preferential tax treatment of payments to shareholders or affiliates. The IRS issued a bulletin (linked in comments) in 2021 urging participants of abusive micro-captive insurance arrangements to exit those arrangements as soon as possible, and they have followed through with the promise to step up examinations in that area. I recently blogged about one of the most recent examples where the IRS challenged, and the US Tax Court upheld, a financial service company's use of a captive arrangement to deduct millions in business expenses and afford preferential treatment to dividends paid by the captive to the company's shareholders. Some practices—like paying "exorbitant" amounts for coverage 10x greater than for average commercial insurance or approving claims after it has already been paid—were rather stark, but the decision nevertheless highlights challenges that companies may face in implementing captives. Read more about the decision and takeaways here: https://lnkd.in/e6_QnxiG #captiveinsurance #insurance #insurancecoverage #taxlaw #riskmanagement

How Private Placement Life Insurance (PPLI) lets the ultra-wealthy shift control of millions without selling, wiring, or triggering taxes and who’s enabling it behind the scenes. Most people think of life insurance as something you buy to protect your family. The ultra-wealthy, however, use a special form of it to protect their wealth. It’s called Private Placement Life Insurance (PPLI) and it’s one of the most powerful, discreet wealth structuring tools in existence. What Is PPLI? PPLI is a customized life insurance policy where the cash value is invested in assets like: • Equities • Hedge funds • Private equity • Real estate • Credit strategies These assets are held inside the policy, giving the owner tax deferral, asset protection, and the ability to shift control with a simple legal signature. Why Use PPLI 1. Tax Deferral: Gains compound inside the policy tax-free 2. Asset Protection: Creditors can’t access assets held in the policy 3. Privacy: Assets are owned by the policy, not the individual 4. Succession Planning: Control is passed on via beneficiary forms — no probate 5. Cross-Border Efficiency: Simplifies global estate planning and avoids inheritance delays How It Works 1. Structure: The client sets up a PPLI policy in an offshore jurisdiction like Bermuda, Luxembourg, or Singapore. 2. Fund: They transfer eligible assets (e.g., $20M of tech stocks) into the policy. 3. Control: The insurance company legally owns the assets, but the client controls investment decisions via a managed account. 4. Transfer: When the time comes, the policyholder assigns the policy or changes beneficiaries—no sale, no wire, no tax trigger. Who Offers This? Top PPLI Insurance Providers: • Lombard International Assurance • Crown Global Insurance (Bermuda) • Swiss Life Global Solutions • Sun Life Financial International • Transamerica Life (Bermuda) • Valorlife / Zurich International Life Private Banks That Facilitate PPLI: • UBS Global Wealth Management • Citi Private Bank • HSBC Private Banking • J.P. Morgan Private Bank • Julius Baer • BNP Paribas Wealth • Pictet They often act as: • Investment manager of the policy assets • Custodian of the investment accounts • Strategic advisor on the wrapper structure A Southeast Asian family office wraps $30M of global stocks into a PPLI held in Singapore. When the founder retires, they change the policy beneficiary to their children’s trust. The assets never leave the structure. No capital gains triggered. Control shifts with a single form. Private Placement Life Insurance - Not just to protect money, but to move it legally, quietly, and globally. #PPLI #WealthStructuring #PrivateBanking #FamilyOffice #TaxPlanning #OffshoreFinance #UHNW #EstatePlanning #AssetProtection #GlobalWealth

Unlocking Financial Potential: Why Savvy Business Owners Choose COLI and BOLI Are you a high net worth business owner looking to optimize your company's financial strategy? It's time to explore Corporate Owned Life Insurance (COLI) and Bank Owned Life Insurance (BOLI). Here's why these powerful tools are becoming essential components in sophisticated financial portfolios: 🏦 What are COLI and BOLI? COLI and BOLI are powerful life insurance policies purchased by corporations or banks on the lives of key employees. The company is both the owner and beneficiary of these policies. These policies are key assets in their portfolio and provide significant value to them in securing talent, retaining exceptional employees and growing their assets. 💼 Key Benefits for Business Owners: 1. Tax-Deferred Growth: Cash value grows tax-deferred, potentially providing significant long-term returns. 2. Tax-Free Death Benefit: When a key employee passes away, the company receives a tax-free death benefit. 3. Improved Financial Metrics: These policies can enhance the company's financial statements and ratios. 4. Executive Retention: Can be used as part of a comprehensive benefits package for key employees. 5. Funding for Buy-Sell Agreements: Provides liquidity for ownership transitions. 6. Creditor Protection: In many jurisdictions, the cash value may be protected from creditors. 🚀 Why High Net Worth Business Owners Are Buying In: 1. Diversification: Adds a stable, low-volatility asset to the company's portfolio. 2. Long-Term Planning: Aligns with long-term business continuity and succession strategies. 3. Wealth Transfer: Can be an efficient tool for transferring wealth to the next generation. 4. Key Person Protection: Mitigates the financial impact of losing crucial team members. 💡 Pro Tip: Consider combining COLI/BOLI with split-dollar arrangements to create win-win scenarios for both the company and key employees. Ready to elevate your business's financial strategy? Consult with qualified financial, legal, and tax advisors to see how COLI or BOLI might fit into your overall business plan. #BusinessStrategy #WealthManagement #FinancialPlanning #ExecutiveBenefits

We have been working on a lot of estate planning for UHNW clients lately How the conversation is framed makes all of the difference It's easy for clients to see Life Insurance as expense, because insurance typically is an expense Permanent Insurance is an Asset When looking at estate planning with Life Insurance you are really talking about repositioning a portion of the clients portfolio Just like clients reposition from equities to fixed income as they age UHNW clients should consider what permanent insurance means inside their portfolio This new asset allocation -Is a hedge against tax rate risk -Reduces timing risk -Can eliminate performance or renewal rate risk on the repositioned assets With the right products you can guarantee competitive IRRs at life expectancy You can create potential alpha over those guaranteed IRRs via corridor Premiums can be scary, especially when they are 6 and 7 figures Make sure you are framing the conversation properly