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Should You Consider Writing Cyberrisk Coverage through Your Captive?

Cyberrisk is a hot topic at captive conferences, and a panel of experts at the Connecticut Captive Insurance Association’s annual Symposium on Captive Insurance provided a great overview of this expanding risk. Leon Pintsov, CEO of SignitSure Company, moderated the panel. He stated, “No statistical stability exists for the cyber risk,” making it difficult to underwrite.
September 19, 2014 Read More

Hot Topics

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Captives Land on IRS Priority Guidance Plan for 2014–2015

On August 26, 2014, the Internal Revenue Service issued its Priority Guidance Plan (PGP) for 2014–2015. The list reflects 317 projects the IRS designates as priorities for the allocation of resources during the designated period, although generally not all items are completed during the designated period.
September 25, 2014 Read More
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Reinsurance Markets, Captives, and Generative Thinking

Over the last month Captive Wire and Captive.com have highlighted a series of headlines suggesting that the fundamentals underlying the global reinsurance market are changing. John Foehl, coeditor of Captive.com and Captive Wire, suggests generative thinking is one means of considering what these changes mean for captives.
September 25, 2014 Read More
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Underwriting Note: Another State Invalidates Caps on Some Punitive Damages

Last week a 7-0 Missouri Supreme Court decision invalidated the state cap on some punitive damages. The supreme court restored the judgment of a lower court because the plaintiff had filed a claim as a common law fraud, which existed in Missouri since the first state constitution was written.
September 17, 2014 Read More
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Captive Insurer Clarification Act Would Correct Unintended Consequences of NRRA

In July 2014 Senator Patrick Leahy (D-VT) introduced Senate Bill 2796, which would clarify the definition of nonadmitted insurer under the Nonadmitted and Reinsurance Reform Act (NRRA) of 2010. The legislation is cosponsored by Senator Lindsey Graham (R-SC).
September 04, 2014 Read More

Recent News

Hawaii Captive Growth Continues in 2014

Hawaii 
Hawaii is now the domicile for 186 captives, with the addition of seven new captives licensed in the first three-quarters of 2014. U.S. owners represent 94 percent of the captives domiciled in Hawaii; the remaining are from Asia/Pacific locations.
December 19, 2014 Read More

Senate Fails To Act on TRIA, Coverage To Expire December 31, 2014

US Senate 
The U.S. Senate failed to pass legislation reauthorizing the Terrorism Risk Insurance Act (TRIA), leading to the expiration of this coverage December 31, 2014. While TRIA reauthorization had passed the House it stalled in the Senate, which adjourned without taking action. That means it will be up to the new incoming Congress in 2015 to determine whether the federal government will continue to provide an insurance backstop for terrorism.
December 18, 2014 Read More

One Step Closer to the End of Passwords--A Cybersecurity Advance?

Cybersecurity 
Usernames and passwords may soon be obsolete. An article titled "One Step Closer to the End of Passwords" on the Enterprise Security Today website, part of the NewsFactor Network of online news sites, suggests that they might be if advancements in cryptography continue to rapidly gain ground.
December 18, 2014 Read More

Captive Basics Section Now Explains Protected or Segregated Cell Captives

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In our ongoing program to update and improve Captive.com, the Captive Basics section has been expanded with a new article. “What Is a Protected or Segregated Cell Captive?” discusses the advantages and disadvantages of rental captives and describes protected cell captives.
December 17, 2014 Read More

"The Strategic Advantage": Theme for 2015 CICA Annual Conference

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The Captive Insurance Companies Association (CICA) has announced the program for its 2015 International Conference, which will be held March 8–10, 2015 in Orlando, Florida.
December 17, 2014 Read More

2014 Workers’ Compensation Claims Operational Benchmarking Study

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Executives, claims professionals, and others serving captives providing workers compensation coverage should read the results of the 2014 Workers’ Compensation Benchmarking Study--Claims Management Operational Study. The study had the benefit of the participation of more than 400 managers, directors, and executive-level claims leaders, a 57 percent increase from the prior year.
December 16, 2014 Read More

NY Times Reports on Life Insurer Tax Avoidance through Use of Captives

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The New York Times has reported that life insurers are …”taking advantage of fierce competition for their business among states, which have passed special laws that allow the companies to pull cash away from reserves they are required to keep to pay claims.”
December 15, 2014 Read More

Looking Ahead to 2016 Money Market Fund Regulations

Investing Money Stocks 
The US Securities and Exchange Commission has recently adopted money market fund rules. The rules are designed to reduce the risk of investor runs on money market funds should another financial crisis occur. The new rules require institutional money market funds to float the net asset value (share price) in such a manner that it reflects the fair value of the investments the fund holds.
December 12, 2014 Read More

Captive Basics Section Now Explains Micro-Captives

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In our ongoing program to update and improve Captive.com, the Captive Basics section has been expanded with a new article: “What Is a Micro-Captive?”
December 11, 2014 Read More