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The Future of Lloyd’s: Facing Up to Fundamental Challenges

This is a market insider’s personal reflection on the future prospects for Lloyd's of London as it faces fundamental challenges around structure, regulation, and cost. Anyone with a captive using Lloyd's for reinsurance should consider the points in this narrative. While it is only one scenario, the thesis is worthy of reflection.
January 19, 2017 Read More
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What Is FATCA, and How Do Captives Handle It?

This article discusses the Foreign Account Tax Compliance Act (FATCA) and how FATCA's requirements affect captives. FATCA's provisions operate to encourage compliance with US information reporting requirements by imposing a withholding tax on those that fail to comply.
January 18, 2017 Read More
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Using Single-Parent Captives for Cyber Liability Risks

This article provides insight, guidance, and out-of-the-box perspectives on how to approach quantifying a particular company's cyber risk profile for the primary purpose of risk transfer using the classic risk management process: (1) identify; (2) assess; (3) treat; and (4) monitor.
January 16, 2017 Read More
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Taxation of Single-Parent Captives: A Basic Guide

One common captive structure is an insurance company owned by a single US corporation (a "single-parent captive"), which insures the risks of its parent and/or brother/sister companies. In some cases, single-parent captives cover risks of third parties as well as related party risk. The US federal income tax treatment of a single-parent captive and its owner depends in part on whose risk the captive insures and on whether the captive is a US company or a non-US company. This article summarizes the basic tax rules applicable to single-parent captives and their owners in various situations.
January 12, 2017 Read More

Hot Topics

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"Insurance Risk" Defined by IRS

Internal Revenue Service ruling specifies types of coverage that do not qualify as insurance risk for determining tax-deductibility of premiums paid to a captive insurer.
March 07, 2016 Read More
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Captive Insurance Again on IRS List

The year may have changed, but the Internal Revenue Service (IRS) preoccupation with captives as potential abusive tax shelters remains the same.
February 25, 2016 Read More
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Captive Insurers' Use of Swing-Rated Reinsurance Contracts Focus of SCCIA Webinar

The use of swing-rated reinsurance contracts by captive insurance companies, including actuarial, accounting, and regulatory implications, was the focus of a March 3, 2016, webinar hosted by the South Carolina Captive Insurance Association (SCCIA).
March 04, 2016 Read More

Recent News

SRS Webinar To Discuss 2017 Outlook for Captive Insurers

In a free webinar hosted by Strategic Risk Solutions (SRS), panelists will look back at captive activities in 2016 and what’s ahead in 2017.
January 19, 2017 Read More

Allianz’s Top 10 Business Risks

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The top 10 business risks for 2017, according to a survey of risk professionals, have been released by Allianz in its sixth annual "Risk Barometer." This article provides the top 10 lists from both a global and US perspective.
January 18, 2017 Read More

2017 "Reinsurance Market Outlook" Is Favorable for Captive Insurers

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In its semi-annual reinsurance market survey, "Reinsurance Market Outlook," Aon Benfield reviews the market’s 2016 performance and looks ahead to the first half of 2017. The good news for captives is the market battle between traditional reinsurers and the capital markets comprised of private equity and insurance-linked securities continues.
January 17, 2017 Read More

State Insurance Regulation Supported in U.S.-European Union Agreement

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The U.S. Treasury Department recently announced that European Union (EU) and U.S. representatives have successfully negotiated a bilateral agreement on insurance and reinsurance regulation intended to “provide enhanced regulatory certainty” for the industry.
January 17, 2017 Read More

Impact of Affordable Care Act Repeal on the RRG and Captive Industry

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The Affordable Care Act over the past 6 years has provided opportunities for captives and risk retention groups. Changes to the Act in the next presidency will most likely provide opportunities for new captive start-ups and stimulate growth of existing captives.
January 16, 2017 Read More

Lisa Havens To Keynote Texas Captive Conference

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TxCIA has announced Lisa L. Havens will be joining the Texas Captive Conference as the keynote speaker on February 16 in Austin, Texas. She is senior vice president-legal counsel and system risk manager for Baylor Scott & White Healthcare in Texas and was Risk Manager of the Year in 2011.
January 13, 2017 Read More

SIIA Announces 2017 Conference Schedule

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For 2017, SIIA has announced four conferences, each focusing on a specific facet of the self-insurance/alternative risk transfer industry. The conferences include the Self-Insured Health Plan Executive Forum, the 2017 International Conference, the Legislative and Regulatory Conference, and the 37th Annual Educational Conference & Expo.
January 13, 2017 Read More

Top Insurance Auditing and Actuarial Firms

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A.M. Best Data has produced a listing of the top audit and actuarial firms for the insurance industry ranked by total 2015 loss reserves. The ranking only includes firms listed on annual statutory statements of client insurance companies. Since the only types of captives required to file statutory statements are risk retention groups (RRGs), the number of clients and total of loss reserves used to develop the rankings do not include captives other than RRGs. The complete ranking was published in the January 2017 issue of Best's Review.
January 12, 2017 Read More

SIIA Campaigns To Protect Employer-Sponsored Healthcare Benefits

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The Self-Insurance Institute of America, together with 32 other national associations, is continuing a campaign to protect the employer-based healthcare system with favorable changes in the Affordable Care Act.
January 11, 2017 Read More