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Nevis as a Captive Domicile: An Insider's Perspective

Atlas Management provides an insider's point of view for those considering the Caribbean island of Nevis as an offshore captive domicile. As a captive domicile, Nevis has many advantages compared to other offshore jurisdictions says Atlas Management.
April 23, 2018 Read More
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Strategy and Risk: 5 Key Questions for Captive Insurers

One of the major roles that a captive insurer's board of directors fills is setting the correct strategy and risk profile for the entity. But many boards struggle with this responsibility. Our 5 key questions can help your board get a better understanding of how to deal with these issues.
April 18, 2018 Read More
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Risk Retention Groups Continue To Grow in Size and Importance

Even in a soft market, risk retention groups (RRGs) have grown significantly and continue to play a vital role providing coverage to their tens of thousands of policyholder-owners. At the end of March 2018, 228 RRGs were doing business, up from just 100 in 2003, according to the Risk Retention Reporter.
April 16, 2018 Read More
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NAIC Releases 2017 Annual Report and Strategic Plan

The National Association of Insurance Commissioners' (NAIC's) annual report outlines its financial health, focuses on its budgeted initiatives and operations, and illustrates state insurance regulator efforts to safeguard insurance markets and protect consumers. While most captive insurers do not need to follow all NAIC protocols, it is wise to keep up with regulator activities.
April 11, 2018 Read More
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OOIDA Risk Retention Group Battles for LRRA Preemption in Georgia

The Georgia Supreme Court will rule on the Reis et al. v. OOIDA Risk Retention Group, Inc. case after the Georgia State Court of Appeals transferred the case to the Georgia high court on the constitutional issue of federal preemption. Frequently, these cases center on whether the federal Liability Risk Retention Act of 1986 (LRRA) preempts state law.
April 09, 2018 Read More
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5 Questions Concerning Your Captive's Asset Allocation Model

Given recent changes in investment markets, captive insurers should take another look at their asset allocation models. A recent Strategic Asset Alliance presentation presents five potential shortcomings in assets allocation models and five key questions to ask your investment manager concerning their asset allocation model.
April 04, 2018 Read More
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Written Claims Handling Procedures for Captive Insurers

The best practice for a captive insurer is to have claims handling procedures, says Lynn Sheils, senior vice president and general counsel of EWI Reinsurance. The procedures should discuss all stages in the life cycle of a claim, including how notice will be handled, investigation standards, coverage evaluation, reserving approach, and claim closure philosophy.
April 02, 2018 Read More
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Top Tips for Hiring a Captive Manager

Early on, the board of directors of a new captive insurer is charged with retaining a captive manager. The creation of a successful partnership between the board and this professional service provider is critical. In this article, Editor John Foehl discusses his top tips for conducting the request for proposal process when interviewing and retaining a captive manager.
March 28, 2018 Read More
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Reinsurance Transactions for Runoff and Captive Insurance

Steve McElhiney, president and CEO of EWI Reinsurance, says about one-third of global captive insurance companies are dormant, meaning they are being used on a limited basis, or they may be a result of a merger. While these dormant captives may still have ongoing transactions, there is a way to unwind a dormant captive.
March 27, 2018 Read More

Recent News

Fitch: European Reinsurers Confirm Resilience to Catastrophes

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As evidenced by European reinsurers' 2017 results, the sector remains resilient to catastrophe losses, said Fitch Ratings. While it took some rate increases for January and April renewals, Fitch reports that with capital typically above companies' target levels, material premium rate rises are not expected in 2018.
April 23, 2018 Read More

Sedgwick Finalizes Cunningham Lindsey Purchase and Names UK Leadership

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Sedgwick has finalized the purchase of Cunningham Lindsey and its subsidiaries, bringing the company 6,000 additional Cunningham Lindsey colleagues located in 65 countries. The combined enterprise includes the subsidiaries of Sedgwick, Vericlaim, and Cunningham Lindsey and will operate globally under the Sedgwick name.
April 20, 2018 Read More

AIG Builds Brexit Resiliency with 2 New Entities

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In a move to restructure its European dealings prior to Brexit, American International Group, Inc. (AIG), will transfer business to two newly formed insurance companies in the United Kingdom and Luxembourg. The reshuffle is intended to provide the organization's clients with uninterrupted UK and European insurance coverage.
April 20, 2018 Read More

Insurers Anticipate Various Terrorism Changes

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With the dramatic shift in the terrorism risk landscape, insurers with significant terrorism exposures are considering the expiration of the Terrorism Risk Insurance Program Reauthorization Act at year-end 2020. Insurers will need to consider the potential termination of the federal backstop for their longer-term policies.
April 20, 2018 Read More

Guernsey Regulator Formalizes Relationship with Bank of England

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The Guernsey Financial Services Commission has signed a Memorandum of Understanding with the Bank of England, reaffirming a long-held relationship between the regulator and the Bank's Prudential Regulation Authority. Through the agreement, both parties will be able to share confidential information about regulated entities and formally cooperate on supervision activities.
April 19, 2018 Read More

Former AIG Executive Megan Thomas Climbs on Board with AXIS Re

Bermuda-based global provider of specialty lines insurance, AXIS Re, has named Megan Thomas as its chief underwriting officer. Based in New York, Ms. Thomas will be responsible for product and portfolio management within AXIS Re. She will join the reinsurance leadership team, reporting directly to AXIS Re CEO Steve Arora.
April 19, 2018 Read More

JLTIM Papers: Deductible Buy-Back and Medical Stop-Loss Programs

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Two recent papers from JLT Insurance Management reveal how captive insurance can play a role in complex risk financing situations. The papers detail how captives can play a role in deductible buy-back programs and how captive insurance can have a positive impact on medical stop-loss programs.
April 18, 2018 Read More

Risk Management Processes Not Keeping Pace with Technology

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Emerging technologies continue to rapidly change the way businesses operate and interact with customers, yet risk management processes are not keeping pace with the associated risks, according to a new report published by Marsh and RIMS, the risk management society™.
April 17, 2018 Read More

Report Reveals Increased Captive Insurance Use for Terrorism Coverages

A recent Marsh report said that, while the number of incidents and casualties declined in 2017, the insurance marketplace continues to innovate and respond to the terrorism threat. The report found that, in 2017, the number of Marsh-managed captives with programs accessing the federal terrorism insurance backstop increased 44 percent.
April 17, 2018 Read More

Lloyd's Reports on Sharing Economy Opportunities and Risks

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Lloyd's recently launched a report titled "Sharing Risks, Sharing Rewards: Who Should Bear the Risk in the Sharing Economy?" According to Lloyd's, the sharing of assets and services creates new opportunities but also new risks.
April 16, 2018 Read More

David Spratt Joins USA Risk Group as Senior Vice President

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David Spratt has joined captive management firm USA Risk Group as senior vice president to serve as a subject matter expert to its clients and prospects. Mr. Spratt has held a variety of consultancy and chief financial officer roles in and around the insurance business.
April 16, 2018 Read More

Small Captive Insurance Company Rules Updated for Technical Corrections

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The Consolidated Appropriations Act of 2018 was enacted on March 23, 2018, and included amendments to IRC section 831(b). Most importantly, the Act clarifies that for purposes of the first diversification test of section 831(b), the term "policyholder" refers to the direct insured under a policy and not to a reinsured.
April 13, 2018 Read More

SIIA Fosters Future Industry Leaders

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The Self-Insurance Institute of America, Inc. (SIIA), has launched the SIIA Future Leaders initiative, designed to encourage talented younger professionals to become involved with the association and the self-insurance industry.
April 13, 2018 Read More