Captive Use Trends & Innovations Videos

  • Captive Industry Growth Is Expected to Continue

     
    Captive Uses Trends & Innovations | Steven McElhiney | President & CEO | EWI Re, Inc.

    In this video, Steve McElhiney, president and CEO of EWI Reinsurance, provides his outlook on the growth potential for the insurance captive industry, both in the United States and internationally. In addition to Fortune 500 companies, in which insurance captives already play a large part, Mr. McElhiney also discusses other types of companies where growth may be expected. The growth expectations for specific countries and regions, including Japan, the European Union, China, South Korea, and Latin America, are also discussed.



  • Captive Ownership Increases Risk Management Awareness

     
    Captive Uses, Trends & Innovations | John Alberici | Chairman | Alberici Corporation 

    Captive insurance ownership can often lead to a fundamentally different mindset for managers and executives in a business. As John S. Alberici, of Alberici Corporation, discusses in this video, having more of a company’s own capital at risk can result in an increased focus on safety and cost control.



  • Facilitating Enterprise Risk Management with Captives

     
    Captive Uses, Trends & Innovations | John Alberici | Chairman | Alberici Corporation 

    John S. Alberici, of Alberici Corporation, discusses how exposures addressed by enterprise risk management can be compatible with a captive insurance approach. As he elaborates on in this video, a long-term focus—rather than a short-term or, in the case of a contractor, project focus—is key to this strategy.



  • Domiciling Captives in Home States To Manage Premium Taxes

     
    Captive Tax Issues | John Alberici | Chairman | Alberici Corporation

    John S. Alberici, of Alberici Corporation, discusses how ambiguities in legislation and premium taxation issues can be addressed by domiciling a captive insurer in a company’s home state. As states become more aggressive in pursuing premium taxes, this approach can prove to be beneficial.



  • Strategy of Using Multiple Captives

     
    Captive Uses, Trends & Innovations | John Alberici | Chairman | Alberici Corporation 

    Tax deductions and types of coverage are both factors that come into play when determining a successful strategy for the use of multiple captive insurers. In addition to discussing these factors, John S. Alberici, of Alberici Corporation, makes a distinction between strategic and tactical coverages and considers how to handle exposures from a frequency and severity standpoint.



  • DOL Approval Not Necessary for Medical Stop Loss in Captives

     
    Captive Uses, Trends & Innovations | Employee Benefits in Captives | Debbie Liebeskind | Senior Actuarial Consultant | Towers Watson

    In this video, Debbie Liebeskind of Towers Watson discusses how captive insurance companies, traditionally used for life and disability coverages, are now handling medical stop loss coverages (related to benefits but usually considered a casualty coverage or casualty risk). Thanks to the Affordable Care Act, because medical stop loss coverage is not considered an Employee Retirement Income Security Act (ERISA) transaction, captive insurance companies are actually not required to get permission from the Department of Labor to be able to operate in this arena.



  • Captives Play Major Role in Managing Terrorism Risk in the UK

     
    Captive Uses, Trends & Innovations | Alan Fleming | Chairman | Airmic

    Although several countries have government-backed catastrophe insurance programs, Alan Fleming of Airmic talks about how captive insurance companies were pivotal in terrorism risk management in the UK. Owing to the conflict with the Irish Republican Army, terrorism coverage was already a significant part of the insurance market, but in the face of an attempt by the market to back out of covering this exposure, Mr. Fleming and others in the captive insurance community stepped in and involved the government in ensuring that a reinsurance program would still be available to this day, with significant cost savings for the insureds involved.



  • New and Innovative Uses for Captives

     
    Captive Uses, Trends & Innovations | Brady Young | President & CEO | Strategic Risk Solutions

    Some of the emerging uses for captive insurance companies, as Brady Young of Strategic Risk Solutions explains, are enterprise risk coverages for generally uninsurable exposures, customer risks such as warranties and service contracts, healthcare capitation risks involving services that cost more than their legally allowed pricing, and medical stop loss coverage. Although not new, some other areas of growth in the use of captive insurance companies include terrorism risk and physician risk retention groups.



  • Captives Benefit Enterprise Risk Management

     
    Captive Uses, Trends & Innovations | Alan Fleming | Chairman | Airmic

    Alan Fleming of Airmic discusses some of the benefits of using captive insurance companies, particularly from the point of view of the enterprise risk management approach. Among others, those benefits include the captive insurance company’s proclivity for having or obtaining a wealth of useful information and connections, as well as the cost-reducing benefits of transferring risks such as employers liability outside of the regular insurance industry and being uniquely placed to benefit a company in times of disaster.



  • Captives as Asset Protection and Transfer Vehicles

     
    Captive Uses Trends & Innovations | Gary Bowers | Partner | Johnson Lambert LLP

    Gary Bowers of Johnson Lambert states that there is a shift in the captive insurance community from monitoring and maintaining the liability side of the balance sheet for companies to protecting and transferring risk away from the asset side. Microcaptives, or 831(b) captive insurance companies, in particular are more frequently a vehicle for deferring taxes on premiums and, unfortunately, are sometimes used to "insure" against illegitimate risks or to improperly shift money around.



  • Healthcare Liability Captives a Significant Segment of the Captive Industry

     
    Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

    Healthcare liability captives represent a very meaningful market segment. In Vermont and Cayman, for example, both in terms of numbers of licenses as well as premium volume, captives underwriting healthcare liability coverages predominate. Healthcare liability captives are a very important segment of the captive industry and are becoming even more so under Accountable Care.



  • Accountable Care's Effect on Medical Professional Liability

     
    Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

    Healthcare liability captives are essentially warehouses for liability claims that have accumulated substantial amounts of claim data. They are now beginning to mine that data to determine ways to improve the quality of care. The management of reputational risk is one of the most significant risks facing healthcare institutions, and the integration of claims data into a quality improvement process is a key to managing this risk. This is changing the medical liability framework right before our eyes.



  • Advantages of Domiciling Your Captive in Your Home State

     
    Captive Uses, Trends & Innovations | John Alberici | Chairman | Alberici Corporation 

    Cost is not the only consideration when deciding where to domicile a captive insurer, as John S. Alberici, of Alberici Corporation, discusses in this video. While domiciling in a company’s home state will save many costs associated with an offshore or more distant domestic domicile, additional factors should be considered as well. For example, the state’s commitment to captive insurance programs, as well as the sufficient availability of specialized personnel for the program’s administration, can prove to be equally important factors.



  • Healthcare Captives Will Write New Lines of Coverage in Response to Accountable Care

     
    Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

    Increasingly, the healthcare system owners of captives will need to carefully examine the use of captive capital and surplus to support the underwriting of insurance and reinsurance in areas that are expected to make a difference in the financial margins of captive parents. Mike Maglaras discusses three types of risks for which healthcare liability captives will be increasingly used in the future: stop loss capitation, cyber and breach liability, and directors and officers liability.



  • Innovative Uses of Captives

     
    Captive Uses Trends & Innovations | Steven McElhiney | President & CEO | EWI Re, Inc.

    As discussed in this video featuring Steve McElhiney, president and CEO of EWI Reinsurance, insurance captives can be formed to address varied and unusual exposures. The costs of appeal bonds are one of several exposures that Mr. McElhiney mentions as examples of unique situations in which an insurance captive can provide cost savings and flexibility for a parent organization.



  • Reinsurance—How Captives Benefit

     
    Captive Uses Trends & Innovations | Steven McElhiney | President & CEO | EWI Re, Inc.

    The need to have a sufficiently leveraged capital position is critically important for an insurance captive. Steve McElhiney, president and CEO of EWI Reinsurance, discusses how reinsurance can help accomplish this goal, as well as act as a knowledge resource for insurance captives who may be expanding beyond their typical exposure bases. Also of importance to insurance captives are the coverage enhancements that reinsurance can facilitate above and beyond what may be available in the traditional market, a point which Mr. McElhiney touches on in the video.



  • Accountable Care Rollout Creates Special Demands on Medical Professional Liability Captives

     
    Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

    Healthcare liability captives will be on the forefront of improving quality and outcomes under accountable care and will need greatly expanded budgets and support services to accomplish this.



  • Healthcare Liability Captives Play a Role in Improving Patient Care

     
    Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

    Healthcare liability captives contain a wealth of historical claim data related to patient safety failures and lapses in the standard of care. Under accountable care and under population management, breaches in the standard of care will increasingly not be reimbursed by payers. Historically, there was little dialogue between risk management departments and quality improvement departments in healthcare systems. The walls are coming down and we are seeing improvement in the quality of care directly related to the mistakes of the past.



  • Healthcare Liability Captives Thrive in a Soft Professional Liability Market

     
    Captive Use Trends & Innovations  | Industry Applications | Michael Maglaras | Principal | Michael Maglaras & Company 

    Captive expert Michael Maglaras believes the soft medical professional liability market we've experienced over the past decade will continue for many years to come. This begs the question of what will become of healthcare liability captives. He contends they will continue to thrive because they have evolved to the point that they are focused much less on “price” and a great deal more on control over the claims management and adjustment process. Simply put, healthcare liability captives give healthcare systems control over their destiny, and they will not give this up.