Captive Insurance Industry and Alternative Risk Transfer Market News

Management Services International


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NACD Report—"Adaptive Governance: Board Oversight of Disruptive Risks"

A new report from the National Association of Corporate Directors (NACD) looks at disruptive risk and proposes a methodology for dealing with the problem. We offer some analysis of the report and explain how the recommendation concerning adaptive governance is similar to our prior discussions of generative thinking.
December 10, 2018 Read More
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The Cayman Islands as a Captive Domicile: An Introduction

The Atlas Insurance Management team gives a first-hand view of the Cayman Islands experience as participants in the second-largest captive insurance jurisdiction in the world and a high-growth business environment, not just for captive insurance but for the whole universe of financial services, including large insurers.
December 05, 2018 Read More
Debra Walker

Debbie Walker—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 Debbie Walker. Ms. Walker is the senior deputy commissioner for captives at the North Carolina Department of Insurance. We spoke to her about captives in North Carolina, the regulatory environment, and where the captive insurance industry is headed.
December 03, 2018 Read More

Derek Freihaut—Captive Insurance Person of Interest

Derek Freihaut, principal and consulting actuary with Pinnacle Actuarial Resources, Inc., recently spoke with about the concepts of risk distribution and expected adverse deviation as well as the role of an actuary in group captives. Read on to learn more from Pinnacle!
November 28, 2018 Read More
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An Update on Butler University's Student-Led Captive and MSRI Program

Catch up on latest phase of Butler University's student-led captive insurance company, get background on the university's new online master of science in risk and insurance (MSRI) program, and hear what professor Zach Finn says about the role of captive insurance as a "mainstream" risk management tool and changing attitudes in the insurance industry.
November 27, 2018 Read More
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What Is a Micro-Captive?

A micro-captive is a small captive insurance company that may be taxed under Internal Revenue Code § 831(b) and may pay tax on investment income only. What is a micro-captive? Read further to find out!
November 19, 2018 Read More
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Key Criteria for Selecting a Captive Claims TPA

The claims handling function is a critical requirement for all captive insurers. The decision to outsource this operation to a third-party administrator (TPA) requires significant due diligence. We explore some of the key criteria to consider in selecting the right claims handling TPA firm.
November 15, 2018 Read More
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What Is a Fronting Arrangement, and Why Do Captive Insurers Use Them?

An insurance pundit once observed that "fronting" is the same as "backing." That seemingly oxymoronic comment is not far off the mark in describing the relationship between a captive insurer and a fronting arrangement. Read on to find out more about fronting arrangements and captive insurance.
November 12, 2018 Read More
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Cyber-Risk Quantification Is Key for M&A Professionals

In the insurance industry, many of the practical details surrounding merger and acquisition (M&A) transactions are based on reasonably sound approaches with sufficient supporting data where advisers can estimate the value of a target entity. What is challenging to quantify is the impact a cyber event may have on a target's value.
November 07, 2018 Read More

Recent News

Captive Insurers Allowed 18 Months To Self-Report to Washington State

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Washington State Insurance Commissioner, Mike Kreidler, has offered captive insurance companies that have "unlawfully" insured any risk in Washington State in the past 15 years the chance to pay a substantially reduced fine and premium tax penalty for self-reporting this activity.
December 11, 2018 Read More

Gallagher Acquires Chicago-Based Captive Insurance Consultant

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Arthur J. Gallagher & Co. has acquired Chicago-based Captive Insurance Company Design and Operations, a captive consultant focused exclusively on medical and professional liability.
December 11, 2018 Read More

Michael Windstein Named CUO for Energy Sector Captive

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Energi has named Michael Windstein as chief underwriting officer (CUO) for its Vermont-domiciled captive insurance solution, eCaptiv LLC. The captive offers two programs that target both small and large energy companies.
December 11, 2018 Read More

NAIC Property-Casualty Profitability Report by Line by State Released

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The National Association of Insurance Commissioners (NAIC) released its "Report on Profitability by Line by State in 2017." The report estimates and allocates profitability in property-casualty insurance on a countrywide basis by state and by insurance line and can be utilized in further analysis of competition and market performance.
December 10, 2018 Read More

Zurich Appoints Adriana Scherzinger To Develop Captive Business

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Zurich Insurance Company has appointed Adriana Scherzinger as the regional head of international program business commercial insurance, Latin America. In her new role, she will promote captive business.
December 07, 2018 Read More

Fitch Ratings: US P&C Insurers' Profitability Rebounds in 2018

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After a difficult 2017, a notable rebound by US property and casualty (P&C) insurers this past year has led Fitch Ratings to revise its fundamental sector outlook to stable from negative, according to Fitch's 2019 outlook report.
December 07, 2018 Read More

Alternative Capital Made Up 22 Percent of Property Cat Limits in 2017

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According to a recent report from Swiss Re, alternative capital made up 22 percent of all property catastrophe limits in 2017, and the amount of alternative capital was around $95 billion in the first half of 2018.
December 07, 2018 Read More

Third-Quarter Global Commercial Insurance Pricing Increased but Limited

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Marsh's "Global Insurance Market Index" for the third quarter of 2018 found that average commercial insurance pricing has increased for the fourth consecutive quarter driven by increases in property and financial and professional lines.
December 06, 2018 Read More

Bermuda Accounted for $3.6 Billion of ILS Issued during Second Quarter

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According to the latest "Bermuda Insurance-Linked Securities (ILS) Market Report," for the second quarter of 2018, the island remained the leading jurisdiction for ILS issuance, representing 73.2 percent of the global outstanding ILS capacity at the end of the quarter ($26 billion of $35.5 billion total global capacity).
December 06, 2018 Read More

Risk Manager's Role Evolving To Support Profound Organizational Change

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The roles of risk managers across Europe were explored in the 9th "European Risk Manager Survey." The survey, conducted by FERMA, PwC France, and Francophone Africa, explored the work of risk managers in supporting the success and sustainability of their organizations.
December 05, 2018 Read More

BMA Report: Bermuda's Catastrophe Resilience Stronger Year over Year

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The Bermuda Monetary Authority (BMA) has released its third annual "Catastrophe Risk in Bermuda" report, which, according to the BMA, demonstrates (re)insurers continued resilience to major, but improbable, catastrophe events and the sophistication and advancement of catastrophe modeling practices in Bermuda.
December 04, 2018 Read More

Pentacle Brings an "Out-of-the-Box" Solution to Insurance Data Capture

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Pentacle Data Solutions (Pentacle) has launched an "out-of-the-box" product that it said will benefit the captive insurance industry. Pentacle offers a comprehensive and practical solution for data capture, offering an insurance platform that grows with the user.
December 04, 2018 Read More

Gibraltar Maintains Healthy Market Performance with Brexit Uncertainty

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Gibraltar's insurance market has experienced significant development over the past decade, with new entrants contributing to growth in the territory's premium base, according to A.M. Best.
December 03, 2018 Read More