Artex is inviting interested Captive.com readers to attend a webinar during which a strategy will be discussed that has helped businesses with large deductible workers compensation programs reduce their loss volatility, strengthen their balance sheet, and qualify for a captive insurance program.
While captive owners and managers pay particular attention to the liability side of the balance sheet (i.e., claims reserves), recent news articles got us thinking about the asset side as well.
Michael Meehan, a consultant at Milliman, Inc., is featured in an A.M. BestTV video that discusses captive feasibility studies and emerging risks. Meehan is asked by John Weber, the BestTV session moderator, what percentage of feasibility studies eventually turn into captives. Meehan indicates that percentage is high because captive managers have usually performed a prefeasibility study prior to contacting an actuary that demonstrates the feasibility. “Captive managers do a good job in evaluating clients" to determine whether it is feasible for them to have a captive, said Meehan.
A Reinsurance Association of America (RAA) survey of a group of 18 US property-casualty reinsurers reports a 10 percent increase in net premiums in the 6 months that ended June 30, 2016, when compared with the same period last year.
The Arizona Captive Insurance Division reports it has issued four new licenses as of June 30, 2016. This represents a net 3 percent growth in its captive count, which totals 113. The 2016 growth reverses the termination of 11 captive license in 2015, which, coupled with the issuance of 7 new captive licenses, resulted in a net loss of 4 in its captive count.
A new A.M.BestTV episode discusses how the aggregate financial results of captive insurance companies rated by A.M. Best are better than the results for the U.S. commercial insurance sector.
The use of technology by risk retention groups (RRGs) and risk purchasing groups (RPGs) will be the theme of the 2016 National Risk Retention Association Conference, titled “Driving a Successful Future: Autonomous RRG.“ The conference is scheduled for September 27–29, 2016, at the Sofitel Water Tower Hotel in Chicago, Illinois.
The financial strength rating of B+ (Good) for National Independent Truckers Insurance Company, A RRG (NITIC) has been affirmed by A.M. Best, and the outlook has been revised from stable to positive.
A recent audit by the Office of the Utah State Auditor of a public entity pool located in the state provides a cautionary tale to group captives about the need for strong board governance. We recognize that there are differences in public entity pools and group captives, with the major one being that public entity pools are funded by taxpayer dollars. However, a number of the points raised within the audit concerning how the pool is governed are applicable to group captives as well.