Tax Laws-SF

Direct Procurement Taxes: A Primer for Captives

Direct procurement taxes, also known as self-procurement taxes, are imposed by many states when an insured purchases insurance from an insurer not licensed in the state. These taxes can drive up the cost associated with buying insurance from a captive. This article is a primer on direct procurement taxes and how they operate.
February 22, 2017 Read More
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Captives Once Again Make the IRS "Dirty Dozen" List

For the third consecutive year, what it calls "abusive micro-captives" make an appearance on the IRS's annual "Dirty Dozen" list of tax scams in 2017. This article points out some important distinctions in the messaging around the IRS's 2017 announcement as compared to last year.
February 20, 2017 Read More
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Basics of Loss Development Triangles

As a member of the board of a captive insurance company, you have a responsibility to understand the key concepts that underpin how the captive performs. This second in a series of articles continues this educational process, focusing on the concept of loss development.
February 20, 2017 Read More
Hong Kong Lights-SF

China Captives in the Limelight

This article provides insights on recent captive insurance developments in China (both mainland China and Hong Kong) and proposes opportunities as well as challenges for future captive development in China.
February 15, 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
Upward Swing HT

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

Demotech, Inc., Releases RRG Financial Analysis for Third Quarter 2016

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Despite underwriting losses, the financial performance of risk retention groups remained stable in the third quarter of 2016, according to Demotech’s latest study.
February 23, 2017 Read More

Steve Kinion To Depart Delaware Captive Insurance Bureau

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The Delaware Department of Insurance announced Steve Kinion is departing as director of its Bureau of Captive Insurance & Financial Products. Under his leadership, Delaware grew to be the third largest captive domicile in the United States, with over 1,000 captive insurance entities.
February 23, 2017 Read More

Report on Insurance Profitability in 2015

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Each year, the National Association of Insurance Commissioners (NAIC) compiles a report showing the profitability of insurance by line and by state. This brief article looks at the countrywide profitability of selected commercial lines written by captives in 2015.
February 22, 2017 Read More

Jonathan Dixon To Succeed Yoshihiro Kawai as New IAIS Secretary General

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Yoshihiro Kawai, the International Association of Insurance Supervisors (IAIS) secretary general for the past 14 years, will welcome Jonathan Dixon into the role following the IAIS Annual Conference in November. The IAIS is a voluntary membership organization of insurance supervisors and regulators from more than 200 jurisdictions in nearly 140 countries.
February 21, 2017 Read More

Sony Group's Captive, PMG Assurance, Gets Revised Outlook from A.M. Best

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The outlook of Sony Group’s captive, PMG Assurance, has been revised to stable by A.M. Best, and its A- rating has been affirmed.
February 21, 2017 Read More

The Number of Captive Insurers in 2016

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Strategic Risk Solutions (SRS) has estimated the number of captives licensed in Bermuda, Cayman, and 18 US domiciles at year-end 2016. The estimates, as presented at the SRS webinar, “2017—A Pivotal Year for the Captive Market,” are provided in this article.
February 17, 2017 Read More

Texas Captive Count Climbs to 34 with Captive Law Changes Possible

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The 4th annual Texas Captive Insurance Association (TxCIA) Conference was held February 15–16, 2017. TxCIA announced the number of licensed Texas captives has climbed to 34. Also, several significant legislative changes are being considered by the 2017 Texas Legislature.
February 17, 2017 Read More

Debbie Lambert Is Our Captive Insurance Leader of the Month

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Debbie Lambert shines in the spotlight as part of our ongoing captive insurance leader interviews. Ms. Lambert has been an influential member of the accounting profession, serving the captive insurance industry since its early days.
February 16, 2017 Read More

Congress Looks to SIIA for ACA Reform Input

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As Congress begins the effort to revamp the Affordable Care Act, it is seeking input from the Self-Insurance Institute of America (SIIA). SIIA has already participated in one hearing and expects to be involved in more.
February 16, 2017 Read More