Friday, August 10, 2007

Severance Insurance

There is a good list of the benefits of a captive in Jay Adkisson's "The Asset Protection Book". He lists the following benefits:
  • Stabalize Insurance Budgets
  • Reduce Insurance Admin Costs
  • Negotiation Tool
  • Utilize Own Experience
  • Premium Flexibility
  • Policy Terms
  • Increased Claims Control
  • Recapture Underwriting Profits
  • Accept Greater Deductibles
  • Access to Reinsurance Markets
  • Customized Coverage
  • Underwrite Exposed Risks
  • Enhance Loss Prevention
  • Profit Center

After looking at this list, the conclusion is pretty obvious. Severance Insurance fits the "captive model" about as well (if not better than) any other cover currently offered by captives.

I'm beginning to get pretty convinced that if that Callen patent really does what I think it's trying to do, then whether it's an independent insurer or a captive insurer, severance insurance may, in fact, really be a reality out there. Unknown. Flying beneath the radar. But a reality. I'll continue to dig.


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