Captive Insurance Industry and Alternative Risk Transfer Market News

Management Services International (MSI)

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Key Issues for Micro-Captives during an IRS Audit

The current state of the law regarding captives in the US Tax Court is important for micro-captive owners as they consider what approach to take going forward. A thorough review of the captive program can help establish an informed basis for decision-making both before and during an Internal Revenue Service (IRS) audit.
May 22, 2019 Read More
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How Do Captive Insurers Use Reinsurance?

A captive is an insurance or reinsurance company set up exclusively to insure or reinsure the risks of the group to which it belongs. A captive insurer may operate as a direct insurer or a reinsurer. Read on to find out more about how captive insurers use reinsurance.
May 20, 2019 Read More
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Key Accounting Issues for Cell Captives

We provide a review and analysis of the latest white paper from Johnson Lambert and Spring Consulting Group on cell captives. Our review highlights some of the key concepts from the report and offers guidance on what to look for.
May 15, 2019 Read More
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Can a Captive Insurance Company Insure Employee Benefits?

Increasingly, organizations today utilize some form of captive insurance to fund the costs of employee benefits such as medical and life insurance, accidental death and dismemberment, long-term disability, and retirement. Learn about the advantages and disadvantages of funding benefits through a captive insurance company.
May 06, 2019 Read More
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Synopsis: 2019 1Q Reinsurance Markets

This synopsis of the major reinsurance brokerage reports on the January 1 reinsurance renewals also includes the factors captives need to watch. Captive insurers should focus on three areas that bear continued surveillance.
April 29, 2019 Read More
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Clear Up Blind Spots with Behavioral Interview Questions

Traditional interviews when recruiting new employees leave companies susceptible to blind spots because they rely on hypothetical or subjective opinions. This creates the risk of hiring the wrong candidate. However, a behavioral interview will unlock reliable and measurable information about each candidate in order to hire the best fit.
April 24, 2019 Read More
Bruce Wright

What a Captive Insurer Should Know about the 953(d) Tax Election

Bruce Wright, partner at Eversheds Sutherland (US) LLP, discusses section 953(d) of the Internal Revenue Code (IRC). Under section 953(d) of the IRC, non-US-domiciled captive insurers may elect to be taxed as if they were domestic companies for all purposes of the IRC.
April 22, 2019 Read More
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David Kirkup—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 David Kirkup. Mr. Kirkup serves as chief operating officer and chief financial officer for Captive Alternatives. We had an in-depth conversation about the current state of affairs in the Puerto Rico captive domicile.
April 17, 2019 Read More
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PwC "2019 State of Compliance Study"—Implications for Captives

Learn the possible implications for captive insurers of the digital transformation of compliance and ethics based on PwC's "2019 State of Compliance Study." We offer our own insights on how this process is likely to impact captive insurance companies and what boards and management should be doing.
April 15, 2019 Read More

Recent News

Greg Frankowiak Joins Pinnacle Actuarial Resources

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Greg Frankowiak has joined Pinnacle Actuarial Resources, Inc., as a senior consulting actuary. Based in Bloomington, Illinois, Mr. Frankowiak has over 20 years of property and casualty actuarial experience with expertise in predictive analytics.
May 22, 2019 Read More

WTW Global Captive Practice CEO Paul Owens To Retire

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Paul Owens, the CEO of Willis Towers Watson PLC's (WTW) Global Captive Practice unit in London, will retire later this year, WTW announced.
May 21, 2019 Read More

Asia-Pacific Captive Insurance Domiciles Expected To Grow

Asia Pacific 
A.M. Best expects to see a significant captive formation increase in Asia-Pacific domiciles as economies grow and businesses seek new and more sophisticated ways of risk management and control, according to the rating agency's latest report, titled "Asia-Pacific Captive Domiciles Poised for Growth."
May 21, 2019 Read More

Global Commercial Insurance Prices Increase 6th Consecutive Quarter

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Marsh recently released its "Global Insurance Market Index," which showed that average commercial insurance prices increased 3 percent in first-quarter 2019, the largest increase since the survey began in 2012.
May 20, 2019 Read More

Aruba, Barbados, and Bermuda Removed from the EU Blacklist

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The Economic and Financial Affairs Council in Brussels has removed Aruba, Barbados, and Bermuda from the European Union's list of noncooperative tax jurisdictions.
May 17, 2019 Read More

USA Risk Group Senior Management Team Finalizes Buyout

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USA Risk Group revealed that its senior management team has completed a management buyout from Spencer Capital Holdings, which will include operations from all captive jurisdictions that USA Risk Group currently operates.
May 17, 2019 Read More

AkinovA Secures Bermuda's First Insurance Regulatory Sandbox License

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AkinovA (Bermuda) Ltd. has secured the first Insurance Regulatory Sandbox license from the Bermuda Monetary Authority under the jurisdiction's new legislative framework that came into effect in July 2018.
May 17, 2019 Read More

The BMA Proposes Regulatory Regimes for New LPI Classes

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The Bermuda Monetary Authority's (BMA) latest consultation paper outlines the BMA's proposed regulatory regimes for new classes of Limited Purpose Insurers (LPIs) and a new category of an intermediary (insurance market places).
May 16, 2019 Read More

US House Acts To Extend the National Flood Insurance Program

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The House of Representatives has recently passed two bills to extend the National Flood Insurance Program (NFIP) until Sept. 30, 2019. The most recent action was May 14 when the House passed an NFIP stand-alone extension measure, H.R. 2578.
May 16, 2019 Read More

US P&C Insurers Should Make Considerations for TRIPRA Expiration

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The Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) is set to expire at the end of 2020. According to A.M. Best, doubt exists surrounding whether TRIPRA will be extended and, if so, under what terms and conditions, particularly amid a hyperpartisan atmosphere in Congress.
May 15, 2019 Read More

Lloyd's Invests in Atlanta-Based InsurTech Company

Investing Money Stocks 
Lloyd's is set to invest in Layr, an Atlanta-based InsurTech company, following Layr's participation in a successful Lloyd's Lab trial. The investment will allow Layr to develop its cloud-based solution to provide faster access for small businesses looking to purchase liability insurance. Layr is also exploring potential distribution opportunities with several Lloyd's syndicates.
May 14, 2019 Read More

Commissioner Julie Mix McPeak Departs Tennessee DOI for Private Sector

Julie Mix McPeak 
Tennessee Department of Commerce & Insurance Commissioner Julie Mix McPeak will leave state government to pursue career opportunities in the private sector.
May 14, 2019 Read More

South Carolina Captive Industry Has Generated over $539 Million

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Being one of the largest captive insurance domiciles in the United States has had a big and positive impact on the South Carolina economy, according to an academic analysis by the University of South Carolina's Moore School of Business.
May 13, 2019 Read More