Articles

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
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Five Steps for Onboarding New Directors

Director turnover is accelerating in the captive insurance industry. What are the key steps you can take to onboard new directors? We'll explore these ideas in detail and provide our own commentary.
June 18, 2018 Read More
Amye King1

Amye King—Captive Insurance Person of Interest

As part of our ongoing commitment to provide thoughtful commentary concerning issues impacting captives and the broader insurance markets, we spoke with Amye King. She provides some very intriguing insights into how the captive insurance markets are being utilized to support the growing legal cannabis industry.
June 15, 2018 Read More
Stewart Feldman

Does Captive Insurance Make Sense for Your Business?

In evaluating whether captive insurance makes sense for your business, Stewart Feldman, CEO of Capstone Associated Services, says that attention should focus on the risk management issues and the business exposures. The evaluation process should concentrate on the risk exposures for the particular business at hand.
June 13, 2018 Read More
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Cannabis and Captive Insurance

The insurance market for the legal cannabis industry is still quite fluid, with changes happening every day. Cannabis businesses are currently unable to obtain adequate and affordable insurance protection in the market, and captive insurance may be able to provide the solution.
June 11, 2018 Read More
Rob Walling

Captive Innovation and the Role of Technology in Captive Formations

According to Rob Walling, principal and consulting actuary with Pinnacle Actuarial Resources, Inc., technology is playing an exciting role in captive innovation and formation. Captive formation is stemming from insurtech activity, such as on-demand insurance running through smart phone technology as well as from a variety of disruptive technologies.
June 06, 2018 Read More
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Stewart Feldman: Captive Insurance Person of Interest

As part of our ongoing commitment to provide thoughtful commentary concerning issues impacting captives and the broader insurance markets, we spoke with Stewart Feldman, CEO and general counsel of Capstone Associated Services. Read his thoughts on captive planning and why he thinks "It takes a village" to properly undertake captive planning.
June 04, 2018 Read More
Tornado Damage

Business Interruption Insurance: A Basic Primer

A captive insurer should have business interruption coverage, as should its members. Editor John Foehl reviews basic questions for consideration when buying or providing coverage for business interruption insurance in this basic primer for captive insurers.
May 30, 2018 Read More
Board Room Meeting

3 Thoughts for Captive Boards and Management To Consider

Does your captive board practice strategic visioning or generative thinking as part of its normal meeting? Do you have trouble identifying topics to use in these discussions? Here are 3 thoughts that might warrant further exploration by your board and management team as part of this process.
May 23, 2018 Read More

Recent News

Direct Placement Tax Decision from the Tax Court of New Jersey

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The Tax Court of New Jersey recently rendered an interesting decision regarding direct placement taxes. Eversheds Sutherland discusses Johnson & Johnson v. Director, Division of Taxation and Commissioner, Department of Banking and Insurance.
June 22, 2018 Read More

Bermuda Captive Conference BestTV Episodes Available

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The Bermuda Business Development Agency has provided a summary of the latest A.M. BestTV episodes coming out of this month's 14th annual Bermuda Captive Conference at the Fairmont Southampton.
June 22, 2018 Read More

Tax Court Issues Second Small Insurance Company Case

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On June 18, 2018, the US Tax Court issued its opinion in Reserve Mechanical Corp. v. Commissioner, holding for the IRS. Eversheds Sutherland says that the facts of the case appear substantially similar to LTR 201609008, issued by the IRS in 2016.
June 21, 2018 Read More

The DOL Issues Final Rule on Association Health Plans

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The US Department of Labor (DOL) issued its final rule on association health plans (AHPs) in "Definition of 'Employer' under Section 3(5) of ERISA—Association Health Plans." According to the DOL, AHPs permit small employers and self-employed individuals to join together in purchasing health insurance.
June 21, 2018 Read More

KBRA Reports on Eurozone Investment Flow

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Kroll Bond Rating Agency (KBRA) recently released a new macro-market commentary titled "Eurozone Investment: Quality over Quantity." The report discusses Europe's relatively disappointing aggregated investment flow data since the global financial crisis.
June 20, 2018 Read More

US Tax Court Finds Deficiencies in "Reserve" Captive Arrangement

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In a new opinion, the US Tax Court found that Reserve Mechanical Corp., a captive insurer incorporated in Anguilla and owned by Peak Casualty Holdings, LLC, failed to qualify as an insurance company for federal income tax purposes under Internal Revenue Code section 501(c)(15).
June 19, 2018 Read More

JLT Re Builds Captive Insurance Expertise in North America

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Todd Burgener will join JLT Re to serve as executive vice president in Chicago, working closely with healthcare captive clients and prospects. Mr. Burgener is tasked with developing tailored risk transfer solutions that respond to the changing healthcare landscape.
June 19, 2018 Read More

Swiss Re's Latest Sigma Study Focuses on Construction Sector

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According to the latest sigma study from Swiss Re, global engineering insurance underwriting performance has deteriorated recently, with premium rates declining and claims rising in some construction sectors. Urbanization, the replacement of aging infrastructure, and the development of renewable energy sources should all promote construction spending and engineering insurance demand.
June 18, 2018 Read More

Bermuda Captive Conference Draws Owners and Risk Managers

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More captive insurance company owners and corporate risk managers seeking captives attended the Bermuda Captive Conference this year compared to previous years. The 3-day conference attracted over 800 registered attendees from the United States, Canada, Latin America, and the United Kingdom, as well as Bermuda.
June 15, 2018 Read More

US Commercial Insurance Prices Up

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A recent commercial lines insurance pricing survey found price changes from first quarter 2017 to first quarter 2018 were in excess of 1 percent for the first time in 11 quarters, breaking the moderating trend in price increases observed since 2013.
June 14, 2018 Read More

CICA Extends Free Membership To Support Young Insurance Professionals

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The Captive Insurance Companies Association (CICA) and the International Center for Captive Insurance Education (ICCIE) will partner on a program to support the career development and educational needs of young captive insurance professionals.
June 14, 2018 Read More

US Captive Reinsurance Runoff Transaction Announcement

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In its first transaction with a California self-insurer, Randall & Quilter (R&Q) recently completed a runoff deal to provide the self-insurer with full finality. In a different captive reinsurance transaction, R&Q issued a reinsurance agreement assuming the legacy liabilities of the Bermuda-domiciled captive of a US corporate airline.
June 13, 2018 Read More

KBRA Assigns A Rating to Watford, an Arch Partner

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Kroll Bond Rating Agency (KBRA) assigned insurance financial strength ratings (IFSR) of A to Watford Holdings. Watford is a total return global re/insurer that combines underwriting medium- to long-tail casualty risks with an investment strategy focused on noninvestment grade credit assets to generate attractive operating returns.
June 12, 2018 Read More