Articles

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Why Do Captives Get Credit Ratings?

While the need for ratings by traditional insurers is obvious, it is not so apparent for captives. This article explains why some captive insurance companies go through the credit rating process.
February 27, 2017 Read More
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Direct Procurement Taxes: A Primer for Captives

Direct procurement taxes, also known as self-procurement taxes, are imposed by many states when an insured purchases insurance from an insurer not licensed in the state. These taxes can drive up the cost associated with buying insurance from a captive. This article is a primer on direct procurement taxes and how they operate.
February 22, 2017 Read More
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Captives Once Again Make the IRS "Dirty Dozen" List

For the third consecutive year, what it calls "abusive micro-captives" make an appearance on the IRS's annual "Dirty Dozen" list of tax scams in 2017. This article points out some important distinctions in the messaging around the IRS's 2017 announcement as compared to last year.
February 20, 2017 Read More
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Basics of Loss Development Triangles

As a member of the board of a captive insurance company, you have a responsibility to understand the key concepts that underpin how the captive performs. This second in a series of articles continues this educational process, focusing on the concept of loss development.
February 20, 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

RIMS Awards 34 Risk Management Students Grants To Attend 2017 RIMS Conference

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RIMS, the risk management society, has presented 34 graduate and undergraduate risk management students with an Anita Benedetti Student Involvement Program grant that will fund their attendance at its 2017 conference in Philadelphia. This is the type of outreach the captive insurance industry should consider.
February 27, 2017 Read More

PCI Urges Congress Not To Modify the McCarran-Ferguson Act

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In testimony before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law, the Property Casualty Insurers Association of America argued that Congress should not look to make any changes to the McCarran-Ferguson Act. The testimony is in response to H.R. 372, which would eliminate portions of the antitrust provisions as they apply to health insurers.
February 24, 2017 Read More

AXA and MetLife Joint Venture MAXIS GBN Selects London for Global Headquarters

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MAXIS GBN has selected London for its global headquarters. The AXA and MetLife joint venture focuses on employee benefits for global, local, and multinational clients. The new headquarters is only a piece of MAXIS GBN’s overall strategy for 2017.
February 24, 2017 Read More

Demotech, Inc., Releases RRG Financial Analysis for Third Quarter 2016

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Despite underwriting losses, the financial performance of risk retention groups remained stable in the third quarter of 2016, according to Demotech’s latest study.
February 23, 2017 Read More

Steve Kinion To Depart Delaware Captive Insurance Bureau

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The Delaware Department of Insurance announced Steve Kinion is departing as director of its Bureau of Captive Insurance & Financial Products. Under his leadership, Delaware grew to be the third largest captive domicile in the United States, with over 1,000 captive insurance entities.
February 23, 2017 Read More

Report on Insurance Profitability in 2015

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Each year, the National Association of Insurance Commissioners (NAIC) compiles a report showing the profitability of insurance by line and by state. This brief article looks at the countrywide profitability of selected commercial lines written by captives in 2015.
February 22, 2017 Read More

Jonathan Dixon To Succeed Yoshihiro Kawai as New IAIS Secretary General

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Yoshihiro Kawai, the International Association of Insurance Supervisors (IAIS) secretary general for the past 14 years, will welcome Jonathan Dixon into the role following the IAIS Annual Conference in November. The IAIS is a voluntary membership organization of insurance supervisors and regulators from more than 200 jurisdictions in nearly 140 countries.
February 21, 2017 Read More

Sony Group's Captive, PMG Assurance, Gets Revised Outlook from A.M. Best

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The outlook of Sony Group’s captive, PMG Assurance, has been revised to stable by A.M. Best, and its A- rating has been affirmed.
February 21, 2017 Read More

The Number of Captive Insurers in 2016

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Strategic Risk Solutions (SRS) has estimated the number of captives licensed in Bermuda, Cayman, and 18 US domiciles at year-end 2016. The estimates, as presented at the SRS webinar, “2017—A Pivotal Year for the Captive Market,” are provided in this article.
February 17, 2017 Read More