An offshore insurance company may help the international insurance community not only in the field of tax planning, asset protection, but also for the purpose of increasing image and goodwill of the group (or holding), which thus can declare ownership of an insurance company and its capitals strength.

Who can use an insurance company for tax planning purposes?

It is possible to state that almost anyone whose business activity nature is of such a type that this legal entity can be made use of. The ownership of an offshore company brings several basic advantages.

The first advantage is a simple fact that this company provides a certain type of insurance at all. Conservative insurers continue to consider many companies and transactions to be too risky and they simply refuse to provide a standard insurance, or if one manages to persuade them to make an insurance policy quotation, they require such restrictive conditions that it is virtually impossible to conclude it.

That is why a company which needs to conclude an non-conventional insurance policy before starting a new project can get into a situation that it will have to leave its plans due to the impossibility of finding an insurance (reinsurance) coverage.

But an insurance policy provided by an International Captive Insurance Company, for which it is possible to find reinsurance more easily on the part of a conventional re-insurer, can solve similar problems for many firms. In comparison with costs of coverage provided by domestic insurers, the insurance premium rate at the international institution will probably be much lower.

Second, there are also tax advantages resulting from the insurance at an international insurance institution, because the costs charged by an insurance company formed in this manner can be included into the tax base of the company. In other words this means that all insurance contracts and policies concluded, for which an insurance company logically requires renumeration, can reduce the tax base of the parent company of the investor in an invoiced volume.