By Fus Yvhikv
Does the idea of gaining the greatest degree of control over insurance, saving hundreds of thousands of dollars, and expanding tribal sovereignty captivate you? Then you must attend the upcoming First Ever: Tribal Captive Insurance Company Conference.
This conference is planned for February 2024 at the gorgeous Gila River Wild Horse Pass Casino and Hotel located just south of Phoenix. The First Ever Tribal Captive Insurance Company Conference is brought to you by the Captive Insurance Association for Native Nations (“CIANN”). You can find out more about CIANN at www.ciann.org.
What is a captive insurance company and how might it benefit your tribal nation? I’m glad that you asked. A captive insurance company is an entity that is owned by its parent company. In our case, the captive insurance company would be owned by a tribal nation. The captive insurance company provides various types of insurance coverages for the Tribal Nation as well as the Nation’s affiliated entities such as gaming, health care, the housing authority and employee health coverages and employee benefits. Many of these insurance policies are not offered by traditional insurance companies or they may only be offered at a very high cost.
Captive insurance companies are a form of self-insurance where risks of catastrophic losses are passed on to reinsurers. Captives can offer insurance coverage at more affordable rates and captives provide the greatest degree of control over insurance and risk management.
Moreover, a captive insurance company also allows the tribe to further enlarge and expand tribal sovereignty via self-regulation. Just as is the case in gaming, tribes can form their own Insurance Commission to license, examine, and regulate the tribal captive insurance company.
So what are some of the major advantages of the tribal captive insurance company. In no order, the following represent the benefits a tribal nation can expect by forming and owning a captive insurance company:
Expands Tribal Sovereignty. The captive expands and enlarges tribal sovereignty via self-regulation by establishing a tribal insurance commission;
Control. The tribal captive insurance company affords the tribal nation the greatest degree of control over risk management and insurance matters:
Customized and Tailored Insurance Policies. The tribal captive insurance company writes its own policies with the best interest of the Tribal Nation being foremost. No more off the shelf boilerplate policies with deceptive fine print:
Save $$$. You can reasonably expect to save a significant amount of money via lower premiums and systematic loss prevention measures. You will no longer be paying premiums with embedded taxes, insurance advertising expenses, and huge sales commissions.
New Business Entity. It is appropriate to think of the tribal captive insurance company as a new business entity with a goal of making a profit. That profit, or surplus, can be returned to the tribe on an annual basis. The goal is to save money for the tribe and for the captive insurance company to write a check to the tribe each year.
No Political Instability. The captive insurance company is owned and controlled by the tribal nation. The captive must always act in the best interests of the tribal nation. Therefore, the captive will not be subject to political instability as we’ve witnessed with the state of Oklahoma in recent years:
Employee Benefits. Captives can offer their parent tribal nation’s employees a wide range of employee health care and employee benefits. These coverages are totally controlled by the Tribal Nation;
They Did It – So Can You. Today there are over 7,000 captive insurance companies worldwide. The first captive insurance company was formed nearly 100 years ago. It is a proven concept with a successful history. A captive insurance company is just that; it is an insurance company. Many organizations, large and small, have successfully benefited from owning a captive insurance company. They Did It – So Can You.
So now that we know what captives are and their primary benefits, let’s talk about the conference. CIANN is hosting the First Ever Tribal Captive Insurance Company Conference. CIANN, the Captive Insurance Association for Native Nations, is the organization conducting the conference. While the exact date has yet to be finalized, it is expected to be a 2-day conference during February 2024. The conference site will be at the beautiful Gila River Wild Horse Pass Casino and Hotel in Chandler, AZ.
The agenda is expected to encompass such topics as: Why Form a Tribal Captive? Captives 101, Captive Formation Stories, Sovereignty and Self-Regulation: The Tribal Domicile, Using a Captive for Employee Benefits, and much more.
For more information on this groundbreaking Captive Insurance Company concept in Indian Country, please visit the CIANN website at www.ciann.orgor email Kenny Tolbert, Executive Director, CIANN at Ktolbert@tolbertco.com.
If you are captivated by the idea of gaining the greatest degree of control over insurance, saving hundreds of thousands of dollars, and expanding your tribe’s sovereignty, you must attend the First Ever Tribal Captive Insurance Company Conference!