How To Set Up a Captive Insurance Company: A 5-Step Primer

Interested in forming a captive? This how-to article explores the 5 key steps every risk manager should undertake in creating a captive. While providing the basic elements, links within the article allow you to delve deeper into most of these steps.
April 24, 2017 Read More
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Interview for Success, and Avoid the Legal Pitfalls

Anyone involved in the hiring process must understand that asking the wrong questions or making improper inquiries can lead to discrimination or wrongful discharge lawsuits, and these suits can be won or lost based on statements made during the interview process. Thus, it is important to incorporate risk management into your interviewing process to help minimize your firm's exposure to employment practices liability. This article provides practical recommendations for effective and legal interviewing.
April 19, 2017 Read More
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The Sharing Economy and the Role for Captive Insurance

The sharing economy introduces new business models and risk attributes that create unique issues for traditional property-casualty insurers. Sharing economy businesses are turning to captive insurers to fill these needs. Learn what the sharing economy is and how captives are being employed to manage the risks.
April 17, 2017 Read More
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Risk Retention Groups: A Basic Overview

A risk retention group (RRG) is a captive insurance company formed pursuant to the federal Liability Risk Retention Act. This article discusses some of the basics of RRGs, including differences between RRGs and other types of captives.
April 12, 2017 Read More

Hot Topics

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"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
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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

RIMS 2017 Annual Conference & Exhibition Awards & Honors Recipients Named

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RIMS, the risk management society™, has named the recipients of the 2017 RIMS Annual Conference & Exhibition Awards & Honors. Read to find out who won RIMS Risk Manager of the Year, the RIMS Rising Star Award, the Harry and Dorothy Goodell Award, and many others.
April 28, 2017 Read More

Bermuda Captive Conference: News from RIMS 2017

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The Bermuda Captive Conference, which was shifted from its regular calendar slot in June to September 10–13, 2017, due to the America's Cup, made an impressive marketing splash at the 2017 RIMS Annual Conference and Exhibition, garnering new registrations and raising awareness among many of the estimated 10,000 delegates attending the major risk industry event.
April 28, 2017 Read More

Glen Frederick and P. Richard Hackenburg Inducted to Risk Management Hall of Fame

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RIMS, the risk management society™, and American International Group, Inc. (AIG), announced Glen Frederick and P. Richard Hackenburg as the two newest inductees into the 2017 Risk Management Hall of Fame.
April 27, 2017 Read More

Immediate Halt of Requirement To Disclose 831(b) Transactions of Interest Denied by Court

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On March 27, CIC Services, LLC, and Ryan, LLC, filed suit against the IRS in US District Court for the Eastern District of Tennessee, seeking injunctive relief by setting aside IRS Notice 2016–66, as modified by IRS Notice 2017–06. On April 21, the court issued an order on CIC’s and Ryan’s motion for preliminary injunction, denying their request to immediately halt the IRS from enforcing its rule.
April 27, 2017 Read More

First Student-Run Captive Insurance Company Launched in Bermuda

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An American university has chosen Bermuda as the domicile for the first known student-run captive insurance company. This small captive insurer was launched by students enrolled in the Davey Risk Management and Insurance Program at Butler University's Lacy School of Business.
April 26, 2017 Read More

AIG Global M&A Study Shows Merger and Acquisition Claims on the Rise

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The recently released AIG Global M&A Claims Study 2017 shows the frequency of mergers and acquisitions (M&A) representations and warranties insurance claims is rising. The study found that 23 percent of deals written over $1 billion end in a claim, as large deals prove risky and the average payout on the most severe category of claims tops $20 million.
April 26, 2017 Read More

A.M. Best Affirms Credit Ratings of National Grid Insurance Company

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A.M. Best has affirmed credit ratings of National Grid Insurance Company (Isle of Man) Limited, a captive of National Grid plc. With a Financial Strength Rating of A (Excellent) and the Long-Term Insurer Rating of “a,” the outlook of these ratings remains stable for this Isle of Man captive.
April 25, 2017 Read More

Randall & Quilter Releases Full-Year Financials for 2016

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Randall & Quilter (R&Q) is pleased with their 2016 financial performance and is optimistic about the future. R&Q states full-year profits ahead of Board expectations and significantly higher than the prior year.
April 25, 2017 Read More

"CICR" Reports on IRS Stance on Loss Reserves in High-Deductible Policies

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The May issue of "Captive Insurance Company Reports (CICR)" begins with an article by Bruce Wright and his colleagues on a recent position taken by the Internal Revenue Service (IRS) with respect to loss reserves in high-deductible policies.
April 24, 2017 Read More