IIG and ICOLI

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Insurance Company Owned Life Insurance, commonly referred to as ICOLI, is a form of corporate owned life insurance utilized by insurance companies. Like other forms of corporate and bank owned life insurance (COLI, BOLI), ICOLI is an institutionally priced corporate life insurance asset used to informally finance employee benefit expenses. It is a well-established and accepted practice with over $41 billion held by over 125 U.S. insurance companies.

As with other corporate-owned life insurance structures, an ICOLI program is typically structured with the employer as both the owner and beneficiary of the policies, and a select group of consenting senior employees as the insureds. 

A properly structured ICOLI program can produce significant economic benefits for the company due to its status as permanently income tax-free, its advantageous risk-based capital treatment, and the potential to significantly reduce earnings volatility, all while allowing the company to continue to provide competitive employee benefit packages to its employees.

IIG is the leader in the ICOLI marketplace*, having designed and implemented some of the largest and most complex programs over the last five years. IIG has been at the forefront of recent industry advancements in product and insurance dedicated fund (IDF) designs used in the implementation of these programs.

* 2015-2020, Year End COLI Sales Summaries - IBIS Associates

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