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Insights from Pinnacle's 2020 Risk Retention Group Benchmarking Study

The Pinnacle Actuarial Resources, Inc., "2020 Risk Retention Group Benchmarking Study" offers insights into risk retention groups' trends and context for their development. Now in its third year, the report can be cross-referenced with studies from prior years.
October 26, 2020 Read More
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Captives Can Be a Solid Risk Financing Play for Construction Companies

Like businesses in other industries, many construction industry companies can benefit from captive insurance, particularly in the current hardening market, according to one captive expert. For those who understand how much risk they're willing to take on, the captive insurance approach can provide both insurance program and financial control.
October 21, 2020 Read More
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Brokers Can Benefit from Captive Manager Partnerships in Hard Market

As the traditional commercial insurance market continues to harden and more small-to-midsize companies are considering alternative risk transfer options, it can be valuable for brokers to understand how they might benefit from partnerships with captive managers. A captive manager can help a broker deliver value-added services to clients.
October 19, 2020 Read More
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Pandemic, Hard Market Showing Captives' Value in Difficult Times

Captive insurance companies are responding to the COVID-19 pandemic in ways traditional insurers frequently aren't, an experience that could lead to broader use of captives to address future crises. While most traditional market business interruption policies aren't responding to the losses, many captive insurance companies provide coverages that are.
October 14, 2020 Read More
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2 Years after Implementation, GDPR Brings Data Privacy Stability

Two years after the implementation of the European Union's General Data Protection Regulation (GDPR), data privacy has become a standard concern of corporate leaders, particularly as they also rank cyber threats among their top risk concerns. The GDPR created a single source of data protection rules applying across Europe.
October 12, 2020 Read More
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The Importance of Vendor Management Best Practices for Captives

Captive insurers tend to rely heavily on external vendors, but those relationships can suffer due to not employing vendor management best practices. It is crucial to have effective vendor management in place because vendor performance ultimately affects the captive'’s performance.
October 07, 2020 Read More
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Pandemic Risk Moves into Top Spot in AXA 2020 "Future Risks Report"

With the world still gripped by the COVID-19 pandemic, experts rank pandemic and infectious diseases as the number one risk confronting society in the next five to ten years, according to AXA's 2020 "Future Risks Report." Climate change, the survey's top risk since 2015, slipped to second place this year.
October 05, 2020 Read More
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COVID-19 Pandemic Highlights Need for a New Approach to Resilience

The COVID-19 pandemic has amplified the challenge posed by a siloed approach to business continuity management and crisis management, according to a new report examining risk professionals' response to the crisis. The report found that the pandemic has highlighted a frequent disconnect between strategic risk and operational resilience and response.
September 30, 2020 Read More
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Considering the Impact of Risk and Pricing in New Product Development

There is likely to be a push by captive insurance company owners and policyholders to cover some of the risks uncovered by the pandemic. But risk and pricing are critical elements in product development, and captives need to ask if they can rate, price, and adjust these risks properly.
September 28, 2020 Read More

Recent News

Vermont Captive Insurance Association To Hold 2021 Conference Online

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The Vermont Captive Insurance Association (VCIA) will hold its 2021 annual conference as an online event due to the ongoing impacts of the COVID-19 pandemic. The VCIA said it determined that a virtual event is the best way to make its 2021 conference accessible to all who wish to participate.
October 26, 2020 Read More

IRS Offers New, Stricter Settlement Offer to Micro-Captive Owners

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The Internal Revenue Service (IRS) has announced a new limited-time settlement offer to certain taxpayers that the agency alleges participated in abusive micro-captive insurance transactions. The IRS said that in the coming days that it will begin sending settlement offers with stricter terms than its first limited-time settlement initiative that began last year.
October 23, 2020 Read More

Milliman Announces New Commercial Auto InsurTech Offering

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Consulting and actuarial firm Milliman, Inc., has announced a new telematics-based risk score offering designed to help improve commercial auto insurer profitability. Milliman created the new InsurTech offering, AccuRate Fleet, with connected vehicle and fleet technology provider Azuga, Inc.
October 23, 2020 Read More

Stephanie Mapes To Chair Vermont Captive Insurance Association Board

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The Vermont Captive Insurance Association (VCIA) has named Stephanie J. Mapes, director of the Burlington, Vermont-based law firm Paul Frank + Collins, chair of the association's board. Ms. Mapes has served on the VCIA's board of directors since 2018 and is a long-standing VCIA member.
October 22, 2020 Read More

Hiscox Ltd. Names Kathleen Reardon CEO of Hiscox Re & ILS

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International specialist insurer Hiscox Ltd. has appointed Kathleen Reardon CEO of Hiscox Re & ILS, subject to regulatory approval. Ms. Reardon, who will be based in Bermuda, will succeed Mike Krefta, who announced in August that he will be stepping down in early 2021.
October 22, 2020 Read More

RMS Estimates Hurricane Delta Onshore US Losses at Up to $3.5 Billion

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Catastrophe risk modeling firm RMS has estimated total onshore US losses from Hurricane Delta at between $2.0 billion and $3.5 billion. The loss estimate includes losses to the National Flood Insurance Program of between $200 million and $400 million, RMS said.
October 21, 2020 Read More

Extended Low Interest Rates Will Harden Market Further: Munich Re

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Citing the impact of low interest rates on reinsurers, Munich Re said it expects insurance markets to harden further. After years of eroding rates and softening of terms and conditions resulting from excess capacity and low major-loss expenditures, low interest rates are having an impact on reinsurers' profitability.
October 20, 2020 Read More

US Insurers Experienced Largest Third-Quarter Cat Losses Since 2017

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The US property-casualty insurance industry's third-quarter natural catastrophe losses will be the largest since the third quarter of 2017, according to Fitch ratings. The third-quarter loss figures will be driven by the elevated frequency of losses during the 3-month period, Fitch said.
October 20, 2020 Read More

Medical Professional Liability Remains Dominant RRG Coverage Line

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While risk retention groups (RRGs) can write a wide range of coverages, one line of coverage is dominant: medical professional liability. Of the roughly $3.5 billion in direct RRGs premiums in 2019, well over 50 percent—nearly $1.96 billion—was for professional liability coverage for RRGs' policyholder-owners.
October 19, 2020 Read More

Tennessee Names Jonathan Habart Captive Section Assistant Director

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The Tennessee Department of Commerce and Insurance (TDCI) has promoted veteran captive regulator Jonathan Habart to Captive Insurance Section assistant director. Mr. Habart, who has been with the TDCI since 2016, most recently was a TDCI captive insurance specialist.
October 16, 2020 Read More

Government or Public-Private Pandemic Risk Backstop Warranted: Best

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Given the systemic nature of the COVID-19 pandemic, proposed public-private partnerships to address its effects are warranted, according to A.M. Best. Best said that it expects significant reserve uncertainty to arise for the current accident year given the challenge insurers face to estimate ultimate losses resulting from the COVID-19 pandemic.
October 16, 2020 Read More

Katherine Keefe Joins Marsh To Lead US Cyber Incident Management

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Katherine Keefe has joined Marsh as US cyber incident management leader. Ms. Keefe will be based in Philadelphia and report to Tom Reagan, Marsh's US Cyber Practice leader. Ms. Keefe joins Marsh from Beazley, where she served as head of breach response services for the past 8 years.
October 15, 2020 Read More

DC Captive Group Prepares for Virtual 2020 Annual Conference

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Registration is underway for the annual conference of the Captive Insurance Council of the District of Columbia, Inc. (CIC-DC), scheduled for October 27. Due to the COVID-19 pandemic, this year's CIC-DC conference will be conducted online but will offer a number of sessions featuring top captive insurance industry experts.
October 15, 2020 Read More