Capstone Associated


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Parallel Cloud Computing: Making Massive Actuarial Risk Analysis Possible

Machine learning is spreading quickly across many industries, including the insurance sector with applications in actuarial analysis, and is showing promising results for making better predictions and automating manual tasks. Advances in cloud computing provide the ability to speed up the time it takes to do so.
July 16, 2018 Read More
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Capstone Part 2: Commentary on "Reserve Mechanical" Policy Pricing

Capstone Associated Services, Ltd., focuses on policy pricing in its second follow-up commentary about the "Reserve Mech. Corp. v. Commissioner" case.
July 11, 2018 Read More
Stewart Feldman

Captive Insurer Tax Challenges

Stewart Feldman, CEO of Capstone Associated Services, says that captive insurance taxation issues concern three areas: 1) risk transfer, 2) risk distribution, and 3) common notions of insurance. For a captive, the focus should be on the insurance aspects of the transaction with the financial and tax aspects being secondary.
July 11, 2018 Read More
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Parametric Insurance: A New Spin on an Old Product

Parametric insurance is not an indemnification product. Instead, parametric insurance is a coverage where a benefit payable is determined in advance of the policy purchase by estimating the loss as accurately as possible, subject to certain conditions being satisfied. The policy cost is based on a predetermined trigger.
July 09, 2018 Read More
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Data Analytics for Captive Insurers—Key Considerations

Data analytics and predictive modeling continue to evolve. Captive insurers are advised to understand the concepts and costs involved. Data analytics can help optimize the captive's risk appetite and risk portfolio.
July 02, 2018 Read More
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Capstone: "Does Captive Insurance Exist after the 'Reserve' Decision?"

Capstone Associated Services, Ltd., provides additional commentary about the Reserve Mech. Corp. v. Commissioner case in a piece titled, "Does Captive Insurance Exist after the 'Reserve' Decision?"
June 28, 2018 Read More
VCIA Rich Smith

Vermont's Captive Conference Is Part of a Thoughtfully Woven Tapestry recently crossed paths with Rich Smith, president of the Vermont Captive Insurance Association (VCIA), to discuss its annual captive conference, happening August 7–9 in Burlington, Vermont. True to this year's conference theme, "Where the Captive World Comes to Meet!" VCIA will host 1,100 people from all over the world.
June 27, 2018 Read More
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You Own a Captive Insurance Company, Now What?

It is important that new captive owners know what to expect from their captive manager to ensure the captive insurance company is running in a profitable manner and in full compliance with the chosen captive domicile's laws and regulations.
June 25, 2018 Read More
Bruce Wright

Captive Insurance Risk Pooling Explained

According to Bruce Wright of Eversheds Sutherland, risk pools in captives allow organizations to spread risk and provide for a tax benefit. Risk pools provide unrelated risk to a captive insurer so the parent corporation can take a deduction for premium paid to the captive using insurance accounting.
June 20, 2018 Read More

Recent News

Insurance Sector Responses Follow UK Government Brexit White Paper

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The UK government's Brexit white paper further defines the United Kingdom's position surrounding its exit from the European Union. Regarding financial services, the white paper confirms that the United Kingdom will leave the EU Single Market, will no longer operate under the European Union's "passporting" regime, and will not adopt an equivalence regime.
July 16, 2018 Read More

ICCIE Updates: CICA Partnership, New CE Guidelines, 17 New Designees

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The International Center for Captive Insurance Education (ICCIE) is partnering with the Captive Insurance Companies Association (CICA) on a new career development program and has updated its continuing education (CE) guidelines for Associate in Captive Insurance designation graduates. ICCIE has also announced 17 new captive insurance designees.
July 13, 2018 Read More

KBRA: Atlantic Hurricane Season Predictions Revised

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Kroll Bond Rating Agency (KBRA) released a research report as two of the leading hurricane forecasters reduced their outlooks for the 2018 Atlantic hurricane season. The revised forecast from Colorado State University called for below average activity. AccuWeather also reduced its forecast, remaining more in line with historical averages.
July 13, 2018 Read More

US House Passes International Insurance Standards Act of 2018

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The US House of Representatives passed the International Insurance Standards Act of 2018 (H.R. 4537) on July 10, 2018. The legislation is intended to preserve the US state-based system of insurance regulation while giving Congress greater oversight of and transparency in international insurance standard-setting negotiations.
July 12, 2018 Read More

Commercial Lines Market Continues To Harden, According to IVANS

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IVANS has announced its second quarter 2018 "IVANS Index: Premium Renewal Rate Index" results. The outcomes showed a general uptick in premium renewal rate change across the commercial lines of business compared to first quarter 2018.
July 12, 2018 Read More

KBRA Updates Affordable Care Act Research

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Kroll Bond Rating Agency (KBRA) recently released an update to its research report on the Affordable Care Act (ACA) outlining the continuing collapse of the healthcare Consumer Operated and Oriented Plan programs that were created and funded as part of the ACA. The latest report is titled "No Relief in Sight for Affordable Care Act Insureds."
July 11, 2018 Read More

FERMA Puts Forward Priorities for Artificial Intelligence Expert Group

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The European Commission appointed 52 experts to the new High-Level Group on Artificial Intelligence. The group includes representatives of academia, business, and civil society that will support the implementation of the European Commission's communication on "Artificial Intelligence for Europe" that was published in April 2018.
July 10, 2018 Read More

M&A Performance in Freefall, but Overall Volume on Track

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In the second quarter of 2018, the global mergers and acquisitions (M&A) market recorded its worst performance since the launch of the Quarterly Deal Performance Monitor by Willis Towers Watson in 2008. So far, the overall M&A volume remains on track to beat the post-crisis high of 2015.
July 10, 2018 Read More

Index-Based Microinsurance Market Expands in Central America

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The Microinsurance Catastrophe Risk Organization, a reinsurance company incorporated in Barbados, has launched Produce Seguro in El Salvador, an index-based insurance product that protects low-income families against natural disasters.
July 09, 2018 Read More

Demotech Releases First Quarter 2018 Financial Analysis of RRGs

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Demotech has released its "Analysis of Risk Retention Groups—First Quarter 2018," reporting on the overall financial performance of risk retention groups (RRGs). Demotech's senior financial analyst, Douglas Powell, has concluded, "Despite political and economic uncertainty, RRGs remain financially stable and continue to provide specialized coverage to their insureds."
July 06, 2018 Read More

Global Employee Benefit Health Plan Costs Increasing 3 Times Inflation

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Based on its latest global employee benefit research findings on medical trends around the world, Mercer Marsh Benefits advises that adopting integrated health and well-being strategies underpinned by stronger digital and data capabilities will be critical in managing the rising costs of employee health benefit programs.
July 06, 2018 Read More

Lloyd's Lab Embarks on Digital Evolution

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For the first time in its 330-year history, Lloyd's of London is opening its doors to the global tech start-up and entrepreneur community, giving unparalleled access to the world's largest market for specialist insurance and reinsurance in support of its digital evolution.
July 05, 2018 Read More

Total Cost of Risk Declines for Fourth Year—A New Normal?

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In the face of record-setting natural catastrophes and an ever-evolving risk environment, the average total cost of risk trended lower for the fourth year in a row, according to the newly released "2018 RIMS Benchmark Survey."
July 05, 2018 Read More