Outsource Insurance - Managing life insurance portfolios to improve performance and reduce financial and fiduciary risk

Family Offices and Outsource Insurance Services

Family Offices are facing increased fiduciary liability and tighter budgets that rarely allow in-house staff to effectively manage the complex life insurance portfolios and structures involving life insurance. Outsource Insurance has designed a turnkey program to solve financial and fiduciary issues cost effectively.

The Outsource program will:

Reduce fiduciary risk related to acting as trustee on life insurance policies
Reduce staffing cost and in-house insurance expertise required to manage Trust Owned Life Insurance Policies
Identify potential problem policies early with a state of the art online reporting system
Provide suitability reviews and reports
Audit coverage, performance, premium, ownership issues or problems, loans, unpaid premiums, etc.
Provide remediation services for poorly performing policies – reduce premium for same coverage or increase coverage for same premium
Provide life settlement services where appropriate for unnecessary policies
Recommend alternatives of coverage, financing, structuring for client's benefit
Consult in the design and development of insurance structures, including private placement policies and captive insurance structures.

Frequently Asked Questions

If we don't have a system in place for managing our portfolio of policies, will Outsource Insurance Services also help us set up the processes and protocol for this to conform to best practices?

Yes, we will provide a turnkey consulting program to set up the program. Without a systematic approach, the program will be dependant on individual staffing and in the event of turnover, the program could fall apart. This is one of the reasons companies choose to outsource this service – to guarantee continuity and consistency regardless of staffing changes.

If we already have an outside vendor doing a policy review, but the review doesn't include Restructuring or Remediation services, can you help us with only those services?

Yes, we can. There is no need for you to replace them as a vendor in order to use our services for the Restructuring and Remediation phases. There are some companies which provide an excellent review service but do not provide the restructuring and remediation phases. We can assist you in integrating their Review service into an overall program.

Does this conflict with the client's agent who originally sold the policy?

No. Sometimes one forgets that it is not the insured who is the client. As the trustee or manager of the Family Office, you are the client and you are the one with the fiduciary liability. If the policy fails to perform as intended, you are liable. If the policy is inefficient or lapses, you are the fiduciary. So as the fiduciary, you have the responsibility to require a system that is failsafe for you the trustee. Our experience is that trustees would prefer to have Outsource Insurance as a single source to address these issues on a business to business relationship instead of trying to interact with multiple insurance agents.

Further, it is virtually impossible to provide a consistent system of policy management unless there is a single vendor. That being said, where appropriate, we will involve the original writing agent, but we will oversee the process to minimize commissions and provide certainty that the best options are being implemented.

Don't the agents who wrote these policies service them and inform the insured of potential problems?

Many problem policies involve seniors whose agents have retired or died. In a study of thousands of TOLI policies, over 40% did not have contact with an agent.

Do you also consult on private placement life insurance and captive insurance structures?

Yes. Both of these strategies should be considered in any Family Office situation given the tax and cost efficiencies that can result. Outsource provides consulting, design and implementation of Captive Strategies and Private Placement, both domestically and offshore.

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