Captive Insurance Industry and Alternative Risk Transfer Market News

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Karin Landry, Managing Partner at Spring Consulting Group

Thinking through the Process of Forming an Employee Benefits Captive

Karin Landry, managing partner with Spring Consulting Group, says when employers think about funding employee benefits in a captive, they need to think about whether or not the funding of those benefits would be subject to the US Department of Labor. 
April 08, 2020 Read More
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Reinsurers Exposed to COVID-19 Losses but Appear Resilient to Pandemic

As both the human toll and the business impact of COVID-19 continue to mount, reinsurers look well positioned to ride out the pandemic. The industry entered the crisis well capitalized. It's also likely to benefit from policy exclusions that will limit some pandemic-related losses.
April 06, 2020 Read More
Hemp Farm with Blue Sky and Clouds in Background

A Specialty/Captive Insurance Hybrid Can Address Hemp Coverage Issues

Since hemp production became legal, it has been fast-tracked to become a unique commodity, but insurance coverage issues remain. A hybrid solution involving specialty insurance and captive insurance might be the answer.
April 01, 2020 Read More
Words Pandemic COVID-19 Stenciled with American Flag

As Business Losses Mount, Pandemic Backstop Discussions Grow

Many businesses have been ordered shut to try to contain the outbreak, while shelter-in-place orders and social distancing are dramatically reducing business for those that are open. Coverage issues around business interruption losses related to COVID-19 have prompted discussions of creating a federal pandemic backstop.
March 30, 2020 Read More
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COVID-19 Crisis Demonstrates Need for Captives for Risk Mitigation

The fallout from the COVID-19 pandemic highlights the role of captive insurance companies as a risk mitigation tool.
March 26, 2020 Read More
Crisis Management in Red Letters Illuminated by Hanging Lightbulbs

COVID-19 and the Need To Think about Leadership and Crisis Management

As we self-quarantine and seek a return to normalcy, real leadership is called for. But what does leadership in a time of crisis look like? A "Wall Street Journal" article got us thinking. It has a lot to do with generative governance.
March 23, 2020 Read More
Green and red bar graphs with red up and down arrow and virus molecules

COVID-19's Possible Impacts on Captive Insurers Are Varied

Captive insurance companies will no doubt feel the impacts of the novel coronavirus pandemic and the COVID-19 disease it causes, both in the near term and possibly in the future as captive owners look to close holes the outbreak is revealing in insurance programs.
March 18, 2020 Read More
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ILS Market Has Been Tested by Losses but Continues To Grow

New issuance of catastrophe bonds and other insurance-linked securities (ILS) may vary from year to year, but over time the volume of reinsurance capital represented by the outstanding securities in the marketplace has steadily grown. In responding to losses, ILS have demonstrated viability as an alternative method of ceding risk.
March 16, 2020 Read More
Prabal Lakhanpal of Spring Consulting Wearing a Dark Suit and Blue Tie

Prabal Lakhanpal—Captive Insurance Person of Interest

Prabal Lakhanpal, vice president of Spring Consulting Group, discusses his background and experiences in the captive insurance industry. He also comments on the captive insurance industry, the state of the market, and where he sees captive insurance and the traditional insurance market going in the future.
March 11, 2020 Read More

Recent News

Holiday Weekend Approaching

Apple Blossom in Spring-SF and the "Captive Wire" email newsletter will be observing the upcoming holidays.
April 09, 2020 Read More

Vermont Captive Group To Make August Conference a Virtual Event

Silhouette of woman standing and talking to three silhouettes of people with virtual background 
The Vermont Captive Insurance Association has decided to hold this year's annual conference in August as a virtual event due to the COVID-19 pandemic. The association said that, having studied various conference format alternatives, it's decided to make this August's conference fully virtual.
April 09, 2020 Read More

Kentucky Extends Captive Filing Deadlines Due to COVID-19

The state of Kentucky filled in blue with the Kentucky state seal on it 
Due to the COVID-19 pandemic, Kentucky captive insurance companies will get more time to file certain information with the Kentucky Department of Insurance.
April 09, 2020 Read More

FERMA Seeks Insurer Flexibility with Buyers Dealing with COVID-19

Protective Hands Around People Cutouts Joining Hands 
The Federation of European Risk Management Associations (FERMA) has called on brokers and insurers to demonstrate enhanced understanding of the insurance needs of European businesses to help them get through the COVID-19 pandemic and the subsequent recovery. FERMA supports creating national pools to cover future pandemic risks.
April 08, 2020 Read More

Analysis Offers New Estimate of COVID-19 Business Interruption Losses

Money graph 
A new analysis of business interruption losses to small US businesses as a result of the COVID-19 pandemic estimates those losses at $431 billion per month. An earlier estimate of business interruption losses for businesses with 100 or fewer employees pegged the figure at $255 billion.
April 07, 2020 Read More

Marsh Names New Global Leader of Multinational Client Service

Headshot of David Rahr, global leader, multinational client service, at Marsh 
Broker and risk adviser Marsh has announced that David Rahr has been appointed global leader, multinational client service. Effective April 15, Mr. Rahr will oversee Marsh's multinational client service team of 1,200 specialists who provide global insight and strategic risk advice to multinational companies of all sizes across 130 countries.
April 07, 2020 Read More

International Insurance Supervisors Group Assessing COVID-19 Impact

Magnifiying Glass with COVID19 with Globe as Background 
The International Association of Insurance Supervisors is taking steps to assess the COVID-19 pandemic's impact on insurers and the organization. The organization noted that IAIS members are pursuing a range of regulatory and supervisory measures to provide operational relief to insurers as they deal with the pandemic.
April 06, 2020 Read More

Letter Challenges IRS Treatment of Small Captive Insurance Companies

"Internal Revenue Service" letters on white stone 
A letter to US Rep. Kevin Brady (R–Texas) takes issue with Internal Revenue Service (IRS) treatment of so-called 831(b) captive insurance companies. The current COVID-19 pandemic underscores the importance of captive insurance programs to midmarket companies, the letter says, but the IRS is targeting and harassing small captives.
April 03, 2020 Read More

Cat Bond, ILS Issuance Sets First-Quarter Record

"Record Braking" in red letters in a red rectangle  
The catastrophe bond and insurance-linked securities (ILS) market saw record first-quarter issuance of more than $5 billion, according to data compiled by Artemis. The first-quarter issuance was up 82 percent from the same period in 2019 and was 19 percent higher than the previous first-quarter record set in 2018.
April 03, 2020 Read More

MSI Webinar To Focus on How Captives Can Fill COVID-19 Coverage Gaps

A notecard with the words "free webinar" with the image of a cloud giving off a Wi-Fi signal 
An upcoming webinar from Management Services International (MSI) will focus on how captive insurance companies can fill gaps in commercial insurance coverage in the face of claims resulting from the COVID-19 pandemic. The webinar, titled "COVID-19 Claims Saving Small Businesses with MSI Captives," is scheduled for noon (EST) on Wednesday, April 8.
April 02, 2020 Read More

New Utah Law Lets Captives Reinsure Risks from Any Insurer

Utah Rocks Arches 
Legislation recently signed into law by Utah Governor Gary Herbert will expand the business that Utah captive insurance companies are allowed to do. The new measure, HB 37, will allow Utah captives to reinsure risks ceded by any other insurer.
April 02, 2020 Read More

Coalition Urges Support of COVID-19 Business Recovery Fund

Word COVID-19 on Building Blocks Atop Money 
The Reinsurance Association of America along with a coalition including other insurance industry trade groups and business organizations sent a letter to federal government leaders urging them to support the COVID-19 Business and Employee Continuity and Recovery Fund, a solution to support businesses and employees hurt by the COVID-19 pandemic.
April 01, 2020 Read More

Powerful New Search Engine Makes You the Expert

Happy Businesswoman Celebrates Successful Web Search 
Our site is now mobile friendly and has a powerful, new, state-of-the-art search engine with cool features that can make you the hero for your clients and colleagues.
April 01, 2020 Read More