The Bermuda insurance market is in the news this morning. We share these words from David Fox, "Prime movers in the convergence of insurance and capital markets have continued to find the Bermuda insurance market a prime place to deploy capital. Just released figures by the Bermuda Monetary Authority show a surge in new Bermuda insurers and a growing trend of using Bermuda market vehicles for the securitization of risk." [Follow this link for more information on this topic, published in the Royal Gazette Online.] 

Florida's proposed captive legislation was introduced to both the House (H 379) and Senate (SB 610) today - January 10th. Captive.com sends its thanks to Chris Kramer for sharing this news with us. Here is the link to a downloadable copy of the proposed bill.

The lead article begins, "One of the fastest growing sectors of the captive insurance industry in the past few years has been among 831(b) captives or “micro” captives. What exactly is an 831(b) captive and why have they become so popular? In this newsletter we take a look at this sector and highlight some of the pros, cons and pitfalls around these captives..." [Take me to the Newsletters page now!]

Tennessee is on the move! We just added links to the Tennessee Insurance Division - Captive Insurance pages to the Domicile Information page. In this easy-to-navigate website, you'll find rules, databased searchable/downloadable captive laws, forms, contacts, and a wealth of information that will answer all the questions you might need if you are considering a captive in Tennessee.

For today, here is the direct link. For longer-term reference, visit the US Fast links section of the Domicile Information page at captive.com. Captive.com thanks our friends at Wilmington Trust for sponsoring this very high-maintenance, busy page.

The 2011 Natural Catastrophe Year in Review Webinar, presented by Munich Re and the Insurance Information Institute on January 4, 2012, is now available for viewing. You can view the recorded presentation here.

With most of us back behind our desks in the aftermath of the holiday season, here are two articles -- both relevant to regulatory provisions in the Dodd-Frank legislation -- that we think you will enjoy. Links to these articles and more may be found on the Article Index page in the captive.com News/Library

• First, in the afterglow of a terrific Cayman Captive Forum, Chris Mancini decided to torment you yet again with another of her Mancini's Musings, this time with an in-depth report on an outstanding seminar given by Tracy D. Williams, an insurance tax lawyer from Sidley Austin LLP. Download Revealing Right Answers Means Asking Right Questions: Will the NRRA Provision of the Dodd-Frank Reform Act Affect My Captive? The topic is weighty, so the article is somewhat lengthy. We hope you will enjoy it!
  
  
• A second timely article, shared with us by our friends at Risk Retention Reporter, was written by Steve Kinion, Director of the Bureau for Captive and Financial Insurance Products, Delaware Department of Insurance, originally written for the December 2011 Edition of Risk Retention Reporter entitled, "Corporate Governance Standards for Risk Retention Groups: State Expertise vs. Federal Inexperience -- Fixing What Is Not Broken."

[For your convenience, you can subscribe all Risk Retention Reporter publications online from captive.com's secure server!] Also, be sure to visit the Risk Retention Reporter website at www.rrr.com.

On Feb. 15, VCIA will present an afternoon of complimentary captive insurance education at their first "VCIA's Strategic Advantages of Captives" seminar. The location is St. Louis, MO. Registration is required. More details and links are available from the Conference Calendar,

Domicile News from Missouri: Department of Insurance names new division heads for Market Regulation, Consumer Protection.

"The Missouri Department of Insurance has appointed two veteran insurance regulators to division director positions..." [Full story]

For more information, also see:

• SC Governor Nikki Haley named Gwen Fuller McGriff Acting Director.

As we learn more from contacts in South Carolina, we will keep you informed.

We are happy to share a note from the desk of MaryJo Lopez, first written to the Delaware captive insurance community. [Download now]

Captive.com sends its warmest congratulations to MaryJo. We look forward to staying touch with her, and hearing her voice her perspectives from the private sector. MaryJo assures us that she will continue to serve on NAIC committees, where her captive insurance expertise is greatly valued.

Domicile News: Guernsey Signs TIEA With India

"Guernsey has signed a Tax Information Exchange Agreement (TIEA) with India. The Island has also put pen to paper with the Seychelles and is expected to sign with St Kitts and Nevis in the coming days. This will take the total number of TIEAs signed by Guernsey from 31 to 34 by the end of the year... [Download full story]

M&A News: KRG Capital Partners Completes Sale of Avizent to York Risk Services

"KRG Capital Partners (KRG), a Denver-based private equity firm, completed its sale of Avizent to York Risk Services Organization, Inc., a portfolio company of ABRY Partners. The transaction closed on December 15, 2011. The all cash sale represents KRG's third successful exit in its $715 million Fund III. Avizent, headquartered in Dublin, Ohio is a fully integrated national risk management provider serving the workers' compensation, auto and general liability segments..."

Association Survey Results from FERMA: Risk managers confirm concerns with supply chain insurance.

"Commercial insurance buyers generally want better insurance products to cover their supply chain risks, a simple survey by FERMA has confirmed. Only 14 percent of the risk managers who responded to the online poll on supply chain risks felt that existing coverage and capacity were adequate, and just half said they insured against contingent or non-damage business interruption,,," [Full story]

[Editor's note: Given the capacity and cost concerns surrounding supply chain insurance that were revealed in this survey, we are very curious to learn whether captives are responding to these needs. Developing...]

Regulatory News: SIIA Sues Michigan in Response to Health Plan Tax Law.

"The Self-Insurance Institute of America, Inc. (SIIA) today announced that it has filed a complaint in Federal Court requesting a declaration that Michigan's recently passed Health Insurance Claims Assessment Act is preempted by the Employee Retirement Income Security Act (ERISA).  SIIA also seeks an injunction against implementation and enforcement of the Act involving self-insured group health plans that are subject to ERISA or their business partners..." [Full story]

Domicile News: Montana Insurance Commissioner Withdraws Support of Nevada in Court Case Against RRG.

"The Montana Captive Insurance Association, Inc. (MCIA) today reported that Montana Insurance Commissioner Monica Lindeen has withdrawn her previously expressed support of action taken by Nevada Insurance Commissioner Brett Barratt to shut down a Vermont-domiciled risk retention group which had been lawfully operating in Nevada for several years..." [Full story]

Planning for 2012 captive insurance training? ICCIE has just posted several new course offerings that you might want to check out. See the Conference Calendar for all the information you need.

Bermuda News: Captive hopes raised by Brussels.

"A chief architect of Solvency II has declared Bermuda insurance regulation as 'first league'..."[Full story]

We learned from our good friend, Chris Kramer, that Florida is joining many of the other states in contemplating captive insurance legislation. Follow this link to view the bill's progress so far. If you have in interest in following this legislation going forward, you can register to track this bill; if not, we'll do it for you! For your convenience, here is the direct link to the bill in downloadable pdf.

Captive insurance professionals contemplating a career move should most definitely have a look at two new postings on the Positions Available page in the Career Opportunities section of captive.com:

• Captive Insurance Executive: "Our client, an established captive insurance management organization, is seeking a Sr. Executive for an offshore location. This is a leadership position responsible for all aspects of captive insurance management including marketing, sales, business development, product development and operations...." [Tell me more]
• Property Senior Claim Representative: "The Alternative Markets Division of Great American Insurance is a leader in the development of long-term, profitable captive partnerships with agents, associations, and large accounts (via group or single entity structures). The Alternative Markets Division is currently searching for a Claim Representative with experience handling property claims..." [Tell me more]

Just a reminder that the Arizona Department of Insurance Annual Training Session is coming up soon, taking place on January 18th. The session will focus on Form B Filings for RRGs; Corporate Governance Standards; and an Open Forum for Questions and Answers. See the Conference Calendar for specifics!

Regulatory Guidance from FERMA and ECIIA: New guidance for senior executives on risk can help avoid additional regulatory attention.

"Practical guidance on implementing European company law requirements on risk management, internal control and internal audit can help reduce further regulatory attention, according to the Federation of European Risk Management Associations (FERMA) and European Confederation of Institutes of Internal Auditing (ECIIA).,," [Note: Press release includes link to download full Guidance paper. To full press release]

Quotable quote from the 2011 Cayman Captive Forum, this one a consensus of the 3 presenters of the seminar, Preparing your Health Care Captive for a Hard Market: "For most lines of business, we are still in a soft market.  Until there is more pain in the industry, the market will continue to stay soft.  We are still overcapitalized.  After 7 years of rate erosion, the national disasters in NZ, Australia and Japan were not enough to sway the market into a hard one."

So, we wait!  Follow this link to an informative set of slides from this presentation.

As we continue the coverage that we began on 12/9 with links to local press reports from both Cayman and Bermuda on the competition between two fine jurisdictions for reinsurance business, we are pleased to share a a Ministerial Statement delivered to the Bermudian Parliament last Friday, December 9, 2011, by the Hon. Paula A. Cox, JP, MP, Bermuda's Premier and Minister of Finance.

[Mancini's Musings: Looks like the competition between two fine, long-standing domiciles, each of which has its own claims to fame and business expertise, continues on. In the face of Bermuda having sought equivalence under Solvency II, and Cayman taking a regulatory position that is independent of Solvency II, we are most interested in seeing how the Bermuda/Cayman offshore rivalry plays out, both for captives and for reinsurance. We are also watching the Channel Islands closely, for the same reason. Guernsey is smoking, and Jersey would appear to be doing well too. Common thread? Maybe; maybe not. Is this interest only temporary, while the insurance world awaits more information on just what the totality of Solvency II means to captives and other insurance entities, which will put some uncertainty to rest? And where will both the NAIC and the federal office of insurance fall by way of centralized regulation/solvency in US domiciles? Where do Canada and the Middle East and Far East domiciles fit in the bigger picture? Or is all of this a tempest in a teapot? After all, many domiciles have established legendary infrastructure and expertise in certain specific regulatory areas over a period of years. Nobody turns a battleship without a doggone good reason.

That said, we all know that uncertainty is never welcome in any industry. Insurance/reinsurance is no exception. We also know that reporting requirements and access to that data once it is reported are of considerable concern in the industry, both from the standpoints of privacy/dissemination of privileged competitive information, and the cost of the information systems that Solvency II will require for reporting. It appears that insurance regulation is spawning yet another tech industry to meet its requirements! Will this be enough to turn the tide significantly?

Sensible, effective regulation, lower taxes and ongoing expenses (including capital requirements, capital costs, technology and more!), appropriate levels of transparency, creativity, flexibility, and most of all predictability over time on all levels is a winning combination. Which domiciles will shine in the coming years? Time will tell. We live in interesting times...hang on to your hats!]

Don't forget to register for the final SRS webinar for 2011, taking place tomorrow, December 13th! This complimentary webinar will take a look at the current taxation landscape for captives. The panel will review developments in captive taxation that have occurred during the year and discuss issues being examined in the field. Presenters? Nothing could be finer than this group of experts -- Chaz Lavelle, Bruce Wright, and Brady Young.

Use this direct link to register now, or you can first learn a bit more about this event on the captive.com Conference Calendar.

The Q4 edition of the IMAC Quarterly newsletter is awaiting your downloads on the Newsletters page in the captive.com News/Library. As always, this edition has all the news you need from Cayman. [To the Newsletters page for this download and more]

Regulatory Update: New York State has instituted a new Department of Financial Services, including a Captive Insurance Group to provide streamlined licensing procedures for captive insurance companies as well as legal, financial, and capital market expertise for companies regarding captive insurance.

We posted this CNS Business article on December 1st from the Cayman Conference: Cayman Woos Reinsurance. Turns out, this one was just the beginning of a very hot series of articles from the local Cayman press. Whoa....read on...

While we were en route back to the US, a second article entitled CI Poised for Lucrative Market became available, outlining some of the specifics that Cayman has put in place to attract the reinsurance market to the island. The article opens, "Capturing the re-insurance industry from Cayman’s main competitor, Bermuda, could net the Cayman Islands around as much in GDP as Cayman’s entire financial services industry currently contributes, according to statistics from the Association of Bermuda Insurers and Reinsurers (ABIR). With the industry in Bermuda in decline, insurance professionals in Cayman say the forthcoming legislative changes about to be enacted will pave the way for commercial reinsurers to incorporate in the Cayman Islands, and this country will then be well positioned to become the domicile of choice for starting a commercial reinsurer..." [To full story]

As if that weren't enough, a third article has been published on this topic in the Royal Gazette Online entitled Cayman targets Bermuda reinsurance business. The article begins, "The Cayman Islands has thrown down the gauntlet to Bermuda stating that they are actively looking to attract the reinsurance industry away from Bermuda with immigration incentives and a targeted marketing campaign focusing on the Island’s reinsurers...." [To full story]

And, from the Bermuda press, have a look at these two Bernews articles: While Cayman Acts, Bermuda Dithers and Cayman Eyes Bermuda Reinsurance.

Live Conference Reporting: The Inaugural TENNESSEE CAPTIVE INSURANCE ASSOCIATION, INC. 2011 Annual Conference is now in the history books. We are delighted to report that there were 105 persons in attendance -- great for an inaugural year.

Here are some casual impressions on today's seminars from captive.com's own John Salisbury, who attended the event: "There were several very good sessions on today’s program.  One of the interesting topics discussed by a panel of captive managers -- Brady Young, Gary Osborne and Dick Goff -- explored the question of why captive domiciles sputter.  I will provide a short report on that topic when I return.  In another session, Steve Chirico did a great job in explaining the outstanding performance of RRG’s compared with other captives and the commercial industry.  More also on that later.  Finally, Kevin Doherty provided a good presentation on the major sections of the new law and fielded many question about the law."

I should add that John's description of Julie Mix McPeak, Tennessee's Commissioner of Commerce and Insurance, doesn't come as a surprise to any of us. Said John, "She's a fireball!" John continued, "Commissioner McPeak, Michael Corbett and the Assistant Commissioner and Department legal counsel outlined the department's application procedures and what those submitting captive applications could expect."

More info on this year's event may be found on the TCIA website. John will also follow up with more detailed reporting next week. Good things are happening in Tennessee, and we look forward to watching this domicile grow in the coming years.

Captive Ratings News: A.M. Best Revises Outlook to Negative for Indemnity Insurance Corporation, RRG.

Strategic Risk Solutions, Inc. (SRS) recently posted two Accountant career opportunities on the Positions Available page -- one in South Carolina, and the other in Vermont. Learn more and apply if you like what you see!

Association News: Harold Pumford to retire as CEO of the Association of Governmental Risk Pools (AGRiP) in mid-2012.

"Harold Pumford, who in February 2000 became the first executive for the Association of Governmental Risk Pools (AGRiP), will retire in mid-2012.   The association’s current President, Shawn Bubb, said Pumford notified all board members on November 29 that he would retire as early as June 1, but no later than August 1, 2012 depending upon when a successor is available to assume his duties..." [Full story]

Harold has been a good friend and contributor to captive com over the years. We wish him only the best of health and happiness in his retirement, and look forward to hearing more of his unique perspective in the coming years.

"...In parallel, the three GCC domiciles with captive legislation, Bahrain, the Qatar Financial Centre and the Dubai International Financial Centre, and their associated regulators are evolving to better meet the needs of regional companies looking at captive insurance. The greater presence of captive managers, such as Marsh and Kane, is also having a positive impact.

"This MEED Insight report, published in association with the Qatar Financial Centre Authority, highlights the captive insurance concept and the many benefits it can bring companies that wish to have a better understanding and control of their risk profiles. Its aim is to provide a comprehensive overview of the captive insurance industry from a regional perspective, which will help inform companies about what is an increasingly popular insurance model."

Captive.com will place links to this document on the News/Library Article Index page. [Download from captive.com] [Download from QFC website]

During the week of December 5th Captive.com will be represented at the Inaugural Annual Conference of the Tennessee Captive Insurance Association in Nashville! As we did for the Cayman Conference, we will bring you a Tennessee Factoid from today through Thursday.

Tennessee Captive Factoid #1: The update of Tennessee’s 1978 captive law took effect  September 1, 2011. Tennessee's original captive law allowed companies to set up pure captives, trade association captives, and industrial insured captives . The update broadens the law to allow companies to set up captive risk retention groups, segregated cell portfolio captives, branch captives and special purpose financial captives.  Tennessee has more than 300 companies with over 500 employees.  Tennessee’s initial marketing focus will be to encourage these companies to create a captive or re-domesticate their existing captives.

4:30 p.m. musings: Let the closing beach party begin!!!! Water is too rough for fireworks...a pity, but we shall compensate with other festivities! All in all, a hugely-successful conference is soon to be in the history books. Returning to Connecticut tomorrow, alas, and back in the office full time on Monday.

4:11 p.m. musings: Eric Lark, Member of Kerr, Russell and Weber, PLC, tells us that he is seeing few pure captives being set up in the current market environment. More popular are SPC or Incorporated cell facilities, in anticipation of an impending hard market. As the insurance market continues to harden, the panel expects this kind of activity to increase.  "Agents are seeing the handwriting on the wall, and are very active getting core facilities in place before the market actually hardens so they will have a place for business for which they can’t find coverage in a hard market," according to Patriot National Insurance Group's Rich Turner. "They are not waiting until it’s too late this time, as many did prior to the last hard market."

"Enhanced regulations are currently being finalised relating to the Cayman Islands Insurance Law 2010, which was passed early last year. The amendments will likely include immigration incentives for the reinsurance industry, such as the introduction of ten year work permits for senior executives within the industry, reduced work permit fees and the introduction of a streamlined process that will speed up work permit applications for the sector..." [More]

12:38 p.m. musings: I’m stunned:  All the investment managers on the panel were receptive to the idea of considering the inclusion of gold as an asset class in the captive’s investment portfolio.

12:17 p.m. musings: What an amazing conference! I have been to more than a few events over the years, as you know. This one is top notch. Of the 1,176 delegates in attendance, about a third of that number is either captive owners or prospective captive owners. Right now, I am in an investment seminar, and by show of hands at the request of moderator Carl Terzer, the captive owners in the room are clearly in the majority relative to service providers. In other sessions, the captive owners comprised perhaps 1/3 of the session's participants -- more in line with the realities of registered delegates. I have NEVER met so many captive owners at a public conference since 1995. IMAC has treated us very well indeed, with excellent food, libations, and entertainment at all the networking events. Congratulations to IMAC on producing a very fine event!

Rumor has it that the beach party is "over the top," according to those who have enjoyed this closing event in past years. I may not roll any cigars (if I do, I can assure you that I won't be smoking one any time soon!) but I am certainly looking forward to this evening's festivities, particularly in light of the gorgeous weather that has moved in....photos on the way.

3 of the top 10 costliest natural CATS since 1950 have occurred this year.   Do the results of the industry argue for price increases? Or, if you are pricing on a long-term basis, should a company use short-term results to justify price increase? 

Live Reporting from the Cayman Captive Forum: IMAC: Cayman Captive Forum sees record boost in attendance.

"Cayman’s largest conference, the Cayman Captive Forum, which is held at The Ritz-Carlton, Grand Cayman from Tuesday to Thursday this week, is attracting a record number of attendees with 1,176 delegates, according to the event organiser, the Insurance Managers Association of Cayman..." [More]

Captive.com sends a hearty THANK YOU to the cayCompass.com for sharing their helpful reports with us this week!

An experienced captive insurance professional has posted his availability for a Captive Insurance Manager position in Europe. If your company is expanding, please see his posting on the Candidates Available page in the captive.com Career Opportunities area.

Captive.com Member News: Spring Awarded Two Additional Patents for its Innovative Benefits Funding Strategies

"Spring Consulting Group, LLC., an internationally recognized provider of benefits funding strategies, initially captured headlines in June 2010 when it was awarded its first U.S. Patent - a patent which was recognized as the first of its kind and subsequently led to Spring being awarded the Business Insurance Innovation Award for Risk Financing in March 2011. Today, Spring has done it again with two new patents..." [Full story]

During the week of the 2011 Cayman Captive Forum, we will serve up a series of "Cayman Captive Factoids," we think you will enjoy.

Member company news: Artex Announces New Facility for Complex and Unusual Risks

"Artex Intermediaries is pleased to announce that one of our primary Bermuda carriers has formed an exciting new division specifically to underwrite unconventional "one off" risks. This new facility, a division of a large "A" rated carrier,  is called CSI for Complex Situational Insurance.

The aim of CSI is to provide creative solutions and deploy the underwriting capacity needed to write individual risks which have limited or no current market options..." [Download full story]

Leading up to next week's Cayman Captive Forum, we wanted to share a fine newsletter published by a long-time captive.com member, Kane. The September edition of the Kane Chronicles newsletter is an information-packed Cayman Update treasure trove of information expanding on a few of the reasons behind Cayman's growing success. The issue's lead article is entitled, "An Assured Future for Captives - Facing Emerging Risks." You will also find a second helpful article discussing recent developments in both the Cayman insurance market and at Kane Cayman entitled, "Building on firm foundations."

We have aggregated some excellent newsletters at captive.com, but I must say that this is among the best. Links are available from the Kane Data Sheet and the News/Library Newsletters page, or you may use this link to download Kane Chronicles.

Prior to the Forum, you might also wish to review this summary document: Cayman Islands Continues Captive Market Growth - Formations Up 93 Percent.

Best's Special Report, Middle East and North Africa: Protests Alter Forecasts for Premium Growth in MENA.

"The Arab Spring of 2011 has altered insurers’ prospects throughout the Middle East and North Africa (MENA). Political unrest can have direct effects on the insurance industry, including premium flows and a higher incidence of claims..." [Download full report]

A.M. Best Briefing: Additional Stress Testing in Light of European Economic Uncertainty. [Press release contains link to downloadable briefing report.]

[Web format] or [Downloadable pdf]

"A.M. Best Co. has performed additional stress tests of the balance sheets of insurers’ exposure to eurozone debt as economic conditions within the region continue to worsen. Findings of these evaluations are discussed in the recently published analytical briefing “A.M. Best’s Additional Stress Testing in Light of European Economic Uncertainty.” [More]

A.M. Best Captive Ratings News:

• A.M. Best Affirms Debt Rating of Tailwind Holdings, LLC. "A.M. Best Co. has affirmed the debt rating of “a-” on $130 million of Series A floating Rate Insured Notes, due 2036 (notes) issued by Tailwind Holdings, LLC (Tailwind Holdings), a Delaware limited liability company and wholly owned subsidiary of Unum Group (Unum) (Chattanooga, TN). The outlook for the rating is stable..."
• A.M. Best Affirms Debt Rating of Northwind Holdings, LLC. "A.M. Best Co. has affirmed the debt rating of “a” on $800 million Floating Rate Insured No(Document link: Carole Lovell)tes, due 2037 (notes) issued by Northwind Holdings, LLC (Northwind Holdings), a Delaware limited liability company and wholly owned subsidiary of Unum Group (Unum) (Chattanooga, TN). The outlook for the rating is stable..."

Member company news: Zurich reaches agreement with Patriot National Insurance Group to underwrite workers' compensation insurance

"Zurich, a leading provider of property and casualty insurance in North America and globally, announced today an agreement with Patriot National Insurance Group, a leading provider of workers’ compensation insurance and related services, to underwrite workers’ compensation insurance through its agency captive platform..." [Full story]

Captive Domicile News: Missouri's leadership at NAIC grows. Insurance director elected to executive positions on two panels. 

"John M. Huff, director of the Missouri Department of Insurance, has been  elected chair of the Midwest Zone of the National Association of Insurance Commissioners during the NAIC's fall meeting. In this position, Huff will serve on the NAIC's Executive Committee, the leadership body for the national association..." [Full story]

Captive Domicile News: DELAWARE IS #1 DOMICILE FOR INSURANCE RISK PURCHASING GROUPS. Risk Retention Reporter cites exponential growth in past two years.

"Delaware Insurance Commissioner Karen Weldin Stewart announced that 2011 reports show Delaware is now the top domicile for insurance risk purchasing groups. The Risk Retention Reporter (RRR), an esteemed insurance trade journal, reported in a recent issue that Delaware has become the leading domicile for Purchasing Groups (PGs). Delaware, with 145 registered PGs, took the top spot from longtime leader, Illinois..." [Download full story]

More captive ratings news: A.M. Best Assigns Issuer Credit Rating to AmerInst Insurance Group, Ltd.

"A.M. Best Co. has assigned an issuer credit rating (ICR) of “bbb-” to AmerInst Insurance Group, Ltd, which is the holding company of AmerInst Insurance Company Ltd (AmerInst). Both entities are domiciled in Hamilton, Bermuda. The ICR for AmerInst Insurance Group, Ltd, is derived from the ICR of “a-” and the financial strength rating of A- (Excellent) of AmerInst, which were affirmed on September 12, 2011. The outlook for all ratings is stable..." [Download full story]

Reinsurance news: FERMA proposes modifications to Brazilian reinsurance regulations in the interest of business and insurance buyers.

"The Federation of European Risk Management Associations (FERMA) has sent specific recommendations to the Brazilian insurance regulator SUSEP to limit the impact of regulations 225 and 232 on market capacity and security in the interest of business and insurance buyers. FERMA's action follows an offer from SUSEP to open discussion with critics of the regulations which went into effect earlier this year..." [Full story]

Captive Ratings News: A.M. Best Assigns Ratings to Fidelity National Indemnity Insurance Company Following Purchase by WRM America Holding Company, LLC.

"A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of “a-” to Fidelity National Indemnity Insurance Company (FNII) (San Antonio, TX). The outlook assigned to both ratings is stable. FNII was purchased by WRM America Holding Company, LLC (WRM America) on November 10, 2011..." [Download full story]

Delaware Captive Insurance Association Fall Forum Recap. This article includes statistics for the domicile, broken down by captive types, as well as highlights of this year's fall forum.

"More than 80 captive insurance industry executives from around the country gathered in Wilmington, Delaware earlier this week for the Delaware Captive Insurance Association (DCIA) Fall Forum where they learned about many exciting developments..." [Link to this article and many more is available from the News/Library Article Index page]

Legislative/Regulatory Opinion from the Heartland Institute: Heartland Institute Rips Into NCOIL Cat Fund Model: ‘It Should Be Ceremonially Burnt’

"Experts at The Heartland Institute today strongly urged the National Conference of Insurance Legislators (NCOIL) to allow its Natural Disaster Catastrophe Fund Model Act to sunset during its meeting next week..." [Full story]

Towers Watson's Insights: The NAIC ORSA — The Evolutionary Process Continues

"As the National Association of Insurance Commissioner's (NAIC's) Own Risk and Solvency Assessment (ORSA) requirement has continued to evolve, Towers Watson has reported the changes in a series of papers. In our June 2011 Insights article, we detailed the NAIC's initial ORSA proposal requirements. Much has changed since then, and we subsequently released an update in August 2011 to keep our clients abreast of the ORSA changes. Continuing in that vein, the following article provides the latest information on the most recent changes to the requirement. What has happened, and what are the next steps?" [To full article]

Links to this timely article may be found on the Legislative & Regulatory, News/Library Articles, and News/Library Newsletters pages.

Guernsey remains an attractive proposition by Peter Niven, Chief Executive of Guernsey Finance. Captive managers continue to view Guernsey as an attractive domicile – and there is new evidence to support the claim. This article will be available from the News/Library Article Index and the Domicile Information pages.

As we continue to get caught up in the aftermath of an 8-day power outage, we are delighted to bring you some excellent news from Cayman: Cayman Islands Continues Captive Market Growth - Formations Up 93 Percent.

"Third quarter figures from the Cayman Islands Monetary Authority (CIMA) show the continued resilience of Cayman’s captive insurance sector. CIMA licensed 29 captive insurance companies in the first nine months of 2011, 14 more than during the same period in 2010. The total number of captives in the jurisdiction at 30 September 2011 stood at 730..." [Download full story]

This is great news for Cayman. We congratulate this fine domicile on their success, and can't wait to learn more at the upcoming Cayman Captive Forum! Hope to see many of you there.

For more Cayman info, see the ASHRM Special Edition of the IMAC Quarterly Newsletter featuring statistical data and lots of healthcare-related information. Links to this newsletter and more are located on the Newsletters page in the News/Library.

Captive Insurance Company News: ACIG Names Michael J. O’Neill CEO and President.

"American Contractors Insurance Group (ACIG) has named Michael J. O’Neill as its new CEO, effective January 1, 2012.  O’Neill will succeed William S. McIntyre in this role.  McIntyre, who helped found the company in 1981, will continue to serve as Chairman..." [Download full story]

Member Company News: USA Risk Group Appoints Jonathan Arbeit Vice President USA Risk Group (West).

"USA Risk Group is pleased to announce the appointment of Jonathan Arbeit as Vice President of USA Risk Group (West), Inc. (“USAW”) effective December 1, 2011..." [Full story]

Regulatory News from Vermont: Captive Insurance Industry Experts Continue to Weigh In on Nonadmitted and Reinsurance Reform Act:  No Captive Insurance Impact.

"The McIntyre White Paper Report on the new federal Nonadmitted and Reinsurance Reform Act (NRRA), part of the recently passed Dodd Frank Act, continues to garner agreement among captive insurance industry experts concluding that the law has no applicability to captive insurance.  The white paper was prepared by the law firm of McIntyre and Lemon, PLLC of Washington, DC..." [Download full story]

Domicile news from Vanuatu: Press Release from Kevin Lindsay - Chairman of the Vanuatu Captive Insurance Association. [Includes helpful links and domicile-related downloads which we have added to the Domicile Information page.]

Vanuatu is on the move!

Captive ratings news: A.M. Best Affirms Ratings for the Nonprofits Insurance Alliance Group Members.

"A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” of the Nonprofits Insurance Alliance Group members, Alliance of Nonprofits for Insurance, Risk Retention Group (ANI), National Alliance of Nonprofits for Insurance (NANI) (both domiciled in Montpelier, VT) and Nonprofits’ Insurance Alliance of California, Inc. (NIAC) (Santa Cruz, CA). The outlook for all ratings is stable..." [Download full story]

Today, the U.S. Department of the Treasury announced the appointment of 15 individuals to serve as members of the Federal Advisory Committee on Insurance.

Some familiar names of good people who will represent our industry well are:

• Bill White, Commissioner, District of Columbia Department of Insurance;
• Brian Duperreault, President and Chief Executive Officer, Marsh and McLennan Companies; and
• Monica Lindeen, State of Montana Commissioner of Securities and Insurance and State Auditor

A few others may be helpful, others neutral, and others, well.....who knows. I am a bit befuddled by the heavy concentration of state insurance commissioners on this panel. Also, representatives from universities may be heavy on bookish knowledge, but light on industry expertise that would give us palatable regulation from this federal department. It is disturbing that insurance company CEO's from companies large and small are conspicuously missing, with the exception of Liberty Mutual. As I indicated when the new office was formed, the camel's nose is under the tent. Developing...

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Solvency II News: EIOPA Advice to the European Commission Equivalence assessment of the Bermudan supervisory system in relation to articles 172, 227 and 260 of the Solvency II Directive

This download covers EIOPA's recommendations to the European Commission on equivalence of the Bermuda insurance supervisory regime with Solvency II. For large commercial insurers and reinsurers (classes 3 and 4), the recommendation is that it is equivalent but with certain reservations (caveats). But for captives in classes 1 and 2, it suggests that the supervision isn’t at the same level (see page 48 for instance). [Download this report] [Link to EIOPA for more reports and downloads]

Captive.com wishes to thank our friends at FERMA for passing on this information for our website visitors!