Articles

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"Summa Holdings" IRA Tax Ruling: A Captive Insurance Perspective

Management Services International (MSI) recently analyzed the "Summa Holdings, Inc. v. Comm'r" case decided and filed in February. In its analysis, MSI asks us to consider if this individual retirement account (IRA) tax ruling has favorable implications for the captive insurance industry and moves to the conclusion that the answer is affirmative.
June 26, 2017 Read More
Benchmark-SF

Benchmarking Is the Process of Improving Performance

Companies around the world use benchmarking to catapult their organizations to the top in their industry. Benchmarking is the process of improving performance by continuously identifying, understanding, and adapting outstanding practices and processes found inside and outside the organization. Almost any activity that can be measured can be benchmarked.
June 21, 2017 Read More
Culture-SF

What Makes a Successful Risk Culture?

As captives have matured and continued to flourish, they are being called upon to expand the risks that they underwrite. Captive boards and management should work to understand that, as their risk appetite grows, so should their dedication to building a successful risk culture within the captive.
June 19, 2017 Read More
Crystal Ball Businessman-SF

What Is the Future of Individual Claims Reserving?

With the increased need for more accurate reserving models, taking advantage of the information embedded in individual claims data with appropriate claims development models is a promising alternative compared with traditional aggregate triangles. The future of individual claims reserving is enlarged by the innovative opportunities offered by these alternative models.
June 14, 2017 Read More

Hot Topics

Insurance Risk Definition HT

"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
Taxes HT

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
Upward Swing HT

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

Technological Change and Cyber Risk Are Top Insurer Risks, According to CSFI Survey

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The top risk now faced by the global insurance industry is its ability to confront structural and technological changes (change management), according to a new Centre for the Study of Financial Innovation (CSFI) survey. Cyber risk follows closely, with anxiety about attacks on insurers and the costs of underwriting cyber crime.
June 26, 2017 Read More

Coverys Will Acquire RQMA, a Lloyd’s Managing Agency, from R&Q

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Coverys will acquire Randall & Quilter Managing Agency Ltd. (RQMA), a fully authorized Lloyd's of London turnkey managing agency based in London. RQMA is part of Randall & Quilter Investment Holdings (R&Q), a non-life insurance investor, underwriting manager, captive manager, and service provider.
June 23, 2017 Read More

Evidence Supports a Bump to 2017 Tropical Storm Season Projections

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In its second seasonal tropical forecast for the North Atlantic basin for the 2017 tropical storm season, The Weather Company, an IBM Business, now expects a total of 15 named storms, 8 of which are hurricanes and 3 of which are major hurricanes.
June 23, 2017 Read More

Rachel Moir Joins IRMI as Captive and Risk Finance Products Manager

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Rachel Moir has joined International Risk Management Institute, Inc. (IRMI), as its captive and risk finance products manager. In this role, Ms. Moir is responsible for the quality and growth of IRMI's risk finance and captive insurance product line. This includes "Risk Financing," "Captive Insurance Company Reports," Captive.com, online continuing education, and books on the topics.
June 22, 2017 Read More

European Captives Are Well Capitalized, A.M. Best Briefing Finds

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An A.M. Best briefing finds that the Reported Solvency II ratios are very strong for the reviewed sample of its rated European captives. The ratios range from approximately 160 to 240 percent. In Best’s view, the disclosures fail to demonstrate the importance of captive risk management and governance practices.
June 22, 2017 Read More

SRS Recognizes Industry Leaders with First Captivator Awards

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Strategic Risk Solutions (SRS) announced the winners of its first Captivator Awards: NiSource Insurance Corporation, Inc.; Ophthalmic Mutual Insurance Company; and East Isles Reinsurance, Ltd. The awards recognize the captives that SRS feels have led the industry in the use of captives, through new uses and innovations in captive structures and excellence in operational performance.
June 21, 2017 Read More

R&Q Completes Loss Portfolio Transfers with American Insurance Groups

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Legacy and run-off acquisition and management specialist Randall & Quilter Investment Holdings Ltd. (R&Q) has recently written two loss portfolio transfer (LPT) reinsurance contracts. The first assumes a bonds portfolio issued by a Fortune 500 Insurance Group. The second covers the livery, trucking, and contractors liability programs of a California-based insurance group.
June 20, 2017 Read More

Blockchain Technology: Transforming Insurance in Real Time

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AIG, IBM, and Standard Chartered Bank have successfully piloted the first multinational, “smart contract”-based insurance policy using blockchain technology. The “smart contract” is a conversion of a multinational, controlled master policy and three local policies, providing a shared view of policy data and documentation in real time.
June 20, 2017 Read More

Opportunities Enlarge as Texas Expands Its Captive Law

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Governor Greg Abbott has signed House Bill 1944, which makes important changes to the Texas captive insurance law, opening up a variety of opportunities. This is the second consecutive session in which the Texas Legislature has made improvements to the captive statute since its enactment in 2013.
June 19, 2017 Read More