What do we do?
We form and manage captive insurance companies to serve businesses in the US middle market seeking to finance real risk and gain more control over their risk environment.
Generally, a “captive insurance company” may be defined as an insurance company owned by the business entity for which it provides direct insurance coverage.
How do we do it?
Our team provides a professional, risk-focused approach to help our clients meet their risk management needs. We work with businesses and prospective captive owners to explore whether a captive insurance company might be suitable as part of their risk management program. We take time to understand each business and design a risk focused program specific to its needs.
Why would a business want to work with Fenix?
Because the business can reduce its total cost of risk by working with us! We enable our clients to achieve this result by collaborating with them, alongside their other risk professionals and legal teams, to consider the optimum blend of commercial, captive, and self-insurance.
Why concentrate on the middle market?
Large US corporations have benefited from captives for many decades. Our program has been built to help the middle market take advantage of options previously available only to these corporations. This is a huge value-add for businesses which far outnumber larger corporations.
Isn’t a captive just a tax play?
No. It only makes sense for a business to establish a captive managed by Fenix Concepts if there is a legitimate need for insurance beyond its commercial coverage. For our clients, captives represent an opportunity to become better stewards of their own risk and a means to manage and capitalize on proper risk management.
Is a captive structure “legal”?
Absolutely. Captive insurance companies are recognized under various state and federal laws.
With respect to federal law, you may have had the IRS in mind when you presented this question. Captive insurance companies are recognized in the Internal Revenue Code and the IRS acknowledges that captive insurance companies are valid business entities when operated appropriately. Unfortunately, captives have received negative publicity in recent years because there have been some bad actors in the industry.
Fenix Concepts focuses on risk. We cannot and will not provide tax advice. As with every captive managed by Fenix Concepts, we urge you to consult an independent tax professional with expertise in captive insurance regarding any specific taxation issues.
Why do we work with brokers?
Our goal is to help a client better manage and reduce their total cost of risk. For our clients to accurately consider the cost of capital and maintain the optimal blend of commercial coverage, captive coverage, and self-insurance, we must work closely with their brokers.
What is ERM?
The term “ERM” stands for “Enterprise Risk Management.” ERM refers to a business adopting a holistic approach to risk management, integrating internal control and strategic planning necessary for the business to avoid falling victim to any catastrophic events and attaining its full potential.
Why should a business consider ERM coverage?
Commercial insurance can be limited to what is offered. Many of the risks that fall into the ERM program are either unavailable or restricted by commercial insurers.
Where a company has significant risk to certain ERM based coverages, for example Business Interruption risks covering COVID, supply chains or reputation, a captive insurance company can provide a way to finance the risk. Goes Here
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If you would like to know more about captives and how they can complement and be a part of an enterprise risk framework, engage Fenix to carry out a feasibility study.
The feasibility study will provide a specific program relating to your company’s individual needs. We would do this by undertaking an in-depth review of your business and the risks faced. The process will involve an initial data request, followed by a risk interview, and then any follow-up data required. This will culminate in a risk assessment review that our actuary will use to determine insurance premiums and initial capital requirements for your captive.
Should the feasibility be acceptable to you we would then work with you to establish your captive insurance company, implement the captive insurance program and provide ongoing management of your company.
