EP 126 | The Benefits of Captive Insurance Companies with Jarid Beck

Jarid Beck is the co-founder and Managing Director of Risk Management Advisors, a national firm specializing in the design, implementation, and management of self-insured plans and captive insurance companies. A career specialist in alternative management strategies with a diverse background in insurance, Jarid delivers technical insurance solutions to clients in a wide variety of industries including construction, real estate, staffing, manufacturing, trucking, and finance. He holds a degree in Business Administration from the University of California, an Associate of Captive Insurance designation from the International Center for Captive Insurance Education, and a Construction Risk Insurance Specialist designation from the International Risk Management Institute.

Jarid joins me today to discuss captive insurance companies and how they can be a great means to serve business owners. He explains how business owners can utilize the captive insurance methodology and process within their companies. He outlines the benefits of captive insurance, especially toward risk management. Jarid also warns against the abuse of captive insurance, explains the work involved in creating captive insurance companies, and highlights how advisors can open the conversation about captive insurance companies with their clients or prospects.

“Captives are a great wedge for prospecting or keeping new ideas in front of your clients. It comes to fact finding—identifying how big their companies are and how many employees they have.” – Jarid Beck

This week on The Model FA Podcast:

• Jarid’s background, professional journey, and how he learned about captive insurance companies
• The business model of Risk Management Advisors
• What captive insurance means
• The risks captive companies typically self-insure for
• The logistics of captive insurance and how it differs from self-insurance
• What captive managers are and how they can help business owners with the captive insurance process
• The benefits of creating captive insurance companies
• Reinsurance and negotiating captives, risk, and losses
• Tax benefits and tax treatments related to captive insurance companies
• Risk profiles and types of business that can best benefit from captive insurance
• How to communicate the benefits of captive insurance to business owners

Resources Mentioned:

• Book: Taken Captive: The Secret to Capturing your piece of America’s multi-billion dollar insurance industry by R. Wesley Sierk III
• Book: The Invisible Bankers: Everything the Insurance Industry Never Wanted You to Know by Andrew Tobias
• Blog: The Tail End — Wait But Why by Tim Urban

Our Favorite Quotes:

• “Captive insurance companies are a risk management tool that addresses insurance and risk needs. Using it outside of its intended purpose can make things go haywire.” – Jarid Beck
• “In captive insurance, businesses start their own insurance company that serves themselves.” – David DeCelle
• “Opening up the conversation is as simple as asking them about captive insurance, seeing how they respond, and letting them know you’re there as their support.” – David DeCelle

Connect with Jarid Beck:

• Risk Management Advisors
• Risk Management Advisors on LinkedIn
• Risk Management Advisors on Facebook
• Risk Management Advisors on Twitter
• Risk Management Advisors on YouTube
• Jarid Beck on LinkedIn

About the Model FA Podcast:

The Model FA podcast is a show for fiduciary financial advisors. In each episode, our host David DeCelle sits down with industry experts, strategic thinkers, and advisors to explore what it takes  to build a successful practice — and have an abundant life in the process. We believe in continuous learning, tactical advice, and strategies that work — no “gotchas” or BS. Join us to hear stories from successful financial advisors, get actionable ideas from experts, and re-discover your drive to build the practice of your dreams.

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Our Team:

President of Model FA, David DeCelle

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