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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

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

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

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

NAIC Fall Meeting Actions of Interest

Fall Leaf 
At the National Association of Insurance Commissioners (NAIC) Fall National Meeting, the Financial Regulation Standards and Accreditation (F) Committee voted to expose the referral quoted later in this article from the Financial Analysis Handbook (E) Working Group for a 20-day public comment period. Comments are due by the close of business on Monday, December 8.
November 21, 2014 Read More

Simplifying MetLife’s Captive and Subsidiary Structure

Four Business People Shaking Hands 
In May 2013 at its Investors Day meeting, MetLife, Inc., announced it would take action to “better position the company to comply with Dodd-Frank collateral requirements [and] proactively address regulatory issues surrounding the use of captive reinsurance companies.…” Earlier this week, a MetLife press release stated the company has moved forward in this direction.
November 20, 2014 Read More

Connecticut Insurance Commissioner’s Resignation and Captive Legacy

Connecticut Flag 
Connecticut Governor Dannel Malloy announced Insurance Commissioner Thomas Leonardi is resigning to take a senior adviser position at a global investment banking firm, Evercore.
November 20, 2014 Read More

What Type of Captive Seeks a Rating?

World and Bar Graphs 
A new A.M. Best publication, "The World of Captive Ratings," is a great resource for captive boards and managers considering the issue of whether to seek a rating for their captive.
November 19, 2014 Read More

Connecticut Insurance Commissioner Speaks Out on IAIS Issues

No Admittance 
Thomas B. Leonardi, Connecticut insurance commissioner, joins many other U.S. regulators who disagree with the International Association of Insurance Supervisors (IAIS) action to eliminate its member observer status.
November 18, 2014 Read More

Demotech Affirms National Assisted Living RRG Rating

Assisted Living 
Demotech has affirmed the financial stability rating of A (Excellent) for the National Assisted Living Risk Retention Group, Inc. (NALRRG).
November 17, 2014 Read More

Additional NAIC Qualified International Reinsurance Authorities Recommended

Bermuda Flag 
Bermuda and Ireland, two offshore domiciles of choice for many captives with U.S. owners, are among the five international reinsurance supervisory authorities that have been recommended for approval by the National Association of Insurance Commissioners (NAIC) Qualified Jurisdiction (E) Working Group.
November 14, 2014 Read More

NAIC Delay and Redraft of Multi-State Reinsurer Definition Recommended

Clean Slate 
The National Association of Insurance Commissioners (NAIC) staff has recommended the Financial Regulation Standards and Accreditation (F) Committee delay action on its Multi-State Reinsurer definition proposal when it meets on Sunday, November 16, in Washington. D.C.
November 14, 2014 Read More

Cayman Captive Forum Offers Opportunities for Continuing Education Credit

Attendees at the Cayman Captive Forum, scheduled for December 2-4, 2014, at the Ritz Carlton, Grand Cayman, can earn continuing education credit toward International Center for Captive Insurance Education (ICCIE) and the American Society for Healthcare Risk Management (ASHRM) certifications.
November 13, 2014 Read More