Should Your Insurance Company Augment its Tax Department?

Should Your Insurance Company Augment its Tax Department?

The so-called "Great Resignation" is leaving an unprecedented number of vacancies in all types of departments across all industries. The insurance sector’s tax department is no exception. A recent survey indicates that tax departments in the U.S. are feeling the strain, with 56% feeling under-resourced.

There are additional challenges if your insurance company is public. Insurance companies in the United States are already highly regulated by the state and federal governments, making them subject to numerous quarterly filing and reporting requirements, and if public, these would include Schedules 10-Q and 10-K. If your organization does not have enough employees with the necessary expertise to comply with regulations, you may face compliance risks or penalties.

With ever-changing regulations and an increasingly complex legal landscape, companies must be vigilant in managing their compliance risks. To do so, you need the proper staff in place. One way to alleviate the staffing shortage burden facing your organization is by co-sourcing your tax department.

A Look at Resource Constraints

As mentioned earlier, more than half of corporate tax departments report having limited personnel resources. On top of the lack of resources, many tax departments are experiencing a deficiency in critical skills needed to keep up with the constantly evolving professional landscape. According to the survey of tax department leaders, the skills gap is real, and the biggest culprit is advanced technology, with 21% of respondents citing that as the biggest skill gap on their team.

More tax departments are looking to support and enhance internal teams through the use of technology and automation while also looking to hire tax professionals who have technology skills, which may put even more short-term pressure on departments’ technology capabilities. A lack of tax experience and a lack of international tax knowledge were also named significant skills gaps facing tax departments today.

Why Co-Sourcing?

Insurance companies that are already understaffed are feeling the stress even more as the skills gap deepens. This challenge is especially true in the tax department, where employees may be scrambling to cope with the usual demands of the job while also working through tax law changes and emerging opportunities. In the survey, 25% of tax departments cited tax reform as a top strategic goal and related challenge.

If your budget prevents you from growing your internal tax team or offering additional training, you may want to pursue outside resources. Co-sourcing is an increasingly popular solution that can help tax departments stay ahead of the curve, and nearly 24% of companies in the survey say they plan to rely more on third-party resources to address resource gaps.

By partnering with a third-party provider, your organization can access the latest technology, best practices, and experienced personnel, freeing up time and resources better spent on strategic initiatives. As a result, you will feel confident that your tax department is in good shape to achieve its goals and address its challenges.

Learn More

If you are interested in learning more about streamlining your organization's tax services, please contact us or download our e-book. 


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CBIZ MHM is the brand name for CBIZ MHM, LLC, a national professional services company providing tax, financial advisory and consulting services to individuals, tax-exempt organizations and a wide range of publicly-traded and privately-held companies. CBIZ MHM, LLC is a fully owned subsidiary of CBIZ, Inc. (NYSE: CBZ).

Should Your Insurance Company Augment its Tax Department?https://www.cbiz.com/Portals/0/Images/Hero-ShouldYourInsuranceCo.jpg?ver=8w0pKtlvfCjZNLXtauhdOA%3d%3dhttps://www.cbiz.com/Portals/0/Images/Thumbnail-ShouldYourInsuranceCo.jpg?ver=H_-3k2oqAJEKEN9jQgce_g%3d%3dThe so-called "Great Resignation" is leaving an unprecedented number of vacancies in all types of departments across all industries. The insurance sector’s tax department is no exception.2022-06-07T17:00:00-05:00

The so-called "Great Resignation" is leaving an unprecedented number of vacancies in all types of departments across all industries. The insurance sector’s tax department is no exception.

Planning & Tax MinimizationFinancial InstitutionsAccounting Advisory & OutsourcingFederal TaxYes