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IRA Tax Ruling Favors Captive Insurance

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

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

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
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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
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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

Eric Halter To Lead New AF Specialty Brand Focused on Fronting

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AF Group has announced Eric Halter as director of AF Specialty, a new brand focused on providing fronting capacity to insurance carriers, managing general agents, reinsurance intermediaries, and captive managers. Mr. Halter will partner with entities that are seeking a fronting facility to place well-managed, turnkey property and casualty programs.
June 27, 2017 Read More

Property/Casualty Industry Income Drops Amidst High First Quarter Catastrophe Losses, According to ISO and PCI

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According to Insurance Services Office, Inc. (ISO), and the Property Casualty Insurers Association of America (PCI), the private US property/casualty insurance industry saw its net income after taxes drop 42.2 percent in first-quarter 2017 from first-quarter 2016. Its overall profitability, as measured by its annualized rate of return on average policyholders’ surplus, fell from 7.9 percent to 4.4 percent.
June 27, 2017 Read More

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,", 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

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