Capstone Associated

Articles

Bruce Wright Featured Video-SF

Captive Insurance and Direct Placement Taxes Explained

Bruce Wright of Eversheds Sutherland explains the Dodd-Frank legislation and direct placement taxes. Direct placement taxes (direct procurement taxes) apply to surplus lines placements as well as placements with any nonadmitted company, such as a captive insurer. The "home state" controls where the payment of this tax is concerned.
August 15, 2018 Read More
Accounting Business Acronym RBC Risk-Based Capital 600x300

What Is Risk-Based Capital—A Primer for Captives

This primer for captive insurers on the concept of risk-based capital (RBC) describes the four basic components of RBC and how the components fit together to arrive at the ultimate ratio.
August 13, 2018 Read More
Businesswoman Asking Question-SF

What Is Captive Insurance?

What is captive insurance? A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.
August 08, 2018 Read More
Michael Maglaras-SF

Direct Workers Compensation in Captives: Its Time Has Come

Michael Maglaras, president of Michael Maglaras & Company, suggests the time has come to insure direct statutory workers compensation in captives on a nonfronted basis. This means the program is underwritten, funded, and managed directly through a captive insurer where the policy is issued directly on the captive's paper.
August 06, 2018 Read More
Rob Walling

A Primer on Trucking Captives

Principal and Consulting Actuary Rob Walling of Pinnacle Actuarial Resources, Inc., says that trucking insurance captives are an example of a specialized industry that requires specialized care. In a number of industries and coverages in the captive insurance space, such as trucking, an actuary cannot simply dabble.
August 01, 2018 Read More
Calculator Figures Liquidity

Captive Basics: Understanding Liquidity

Captive board members should understand several key concepts. Chief among them is liquidity and how it impacts their captive. This article provides a basic primer on liquidity for both new and seasoned board members.
July 30, 2018 Read More
Drone in Warehouse-SF

Innovation and Productivity in Captive Insurers

Are captive insurers participating in the innovation and productivity changes reshaping the insurance industry? We discuss some recent trends and look at three key technologies impacting the insurance industry.
July 25, 2018 Read More
NCCIA President Tom Adams

NCCIA President Tom Adams Says "Keep Your Eye on" North Carolina Captives

Captive.com spoke with Tom Adams, president and CEO of the North Carolina Captive Insurance Association (NCCIA), to discuss the annual conference, scheduled for August 20–22 at the Sheraton, Le Méridien, in Charlotte, North Carolina. Captive.com readers can register online for this quickly approaching event.
July 23, 2018 Read More
Cyber Threat Assessment-SF

What's Your Captive's Cyber-Security Risk Profile?

Cyber-security threats continue to grow. What's your captive's cyber-security risk profile? Developing a risk profile provides your captive with a clear illustration of the threats it faces and enables you to begin a proactive process to counter these risks.
July 18, 2018 Read More

Recent News

Global Economic Losses $36 Billion So Far in 2018, over Half Insured

natural disaster icons-SF 
Swiss Re said its preliminary sigma estimates surrounding global economic losses from natural catastrophes and man-made disasters in the first half of 2018 were $36 billion. According to Swiss Re, this figure is well below the 10-year average of $125 billion in economic losses.
August 17, 2018 Read More

CIMA and NAIC Fortify Relationship To Coordinate Regulatory Efforts

CIMA MOU Signing 480x377 
The Cayman Islands Monetary Authority (CIMA) has signed a memorandum of understanding (MOU) with the National Association of Insurance Commissioners (NAIC). The MOU is designed to help insurance supervisors in the United States and the Cayman Islands coordinate on regulatory issues with the goal of efficient, fair, safe, and stable insurance markets.
August 17, 2018 Read More

More Insurers Using Reinsurance Strategy To Manage Volatility

Growing Indicators 
The latest risk appetite survey from Willis Towers Watson confirmed that risk appetite is increasingly central to insurers' business decisions. The survey found that, more and more, insurers are using reinsurance for earnings protection and volatility reduction.
August 16, 2018 Read More

Captive Alternatives One of Fastest-Growing Private Companies in the United States

Businessman on Rocket  
Atlanta-based Captive Alternatives is number 2,971 on "Inc." magazine's 37th annual Inc. 5000, which ranks the nation's fastest-growing private companies. This is the second time Captive Alternatives appears on the Inc. 5000, with 3-year revenue growth of 137 percent.
August 16, 2018 Read More

Microsoft Settles, Washington Asks Captives To "Pay Their Fair Share"

Tax Laws 2-SF 
Microsoft Corporation's Arizona captive insurance company will pay more than $875,000 for unpaid premium taxes and interest and penalties, ending a cease-and- desist order issued in May by State of Washington Insurance Commissioner Mike Kreidler.
August 15, 2018 Read More

Captive Premium a "Nice Target for Tax Revenue," Say Some Regulators

David Provost 2018 VCIA 
At the Vermont captive conference, David Provost, Vermont's deputy commissioner of captive insurance, encouraged captive insurers who want to see changes in captive insurance company statutes to contact their captive regulators. He also said some state regulators are speaking of captive premium as a nice target for tax revenue.
August 14, 2018 Read More

Captive Insurers Should Review Their Risks at Least Every 5 Years

Karin Landry VCIA  
According to Karin Landry, a managing partner with Spring Consulting Group LLC in Boston, after captive insurance companies are set up, their parents should periodically review the risks their captives are covering. At a minimum, this assessment should be every 5 years and, in some cases, more frequently.
August 14, 2018 Read More

FERMA Recommends Nonfinancial Reporting as a Regular Business Process

Europe 480x377 
The Federation of European Risk Management Associations (FERMA) has recommended to the European Commission that companies should report nonfinancial matters such as environmental and social performance as a regular business process and that reporting risks connected with nonfinancial elements should be aligned with the organization's objectives.
August 13, 2018 Read More

Brady Young Receives VCIA's Industry Service Award

Award Trophy 
At its annual conference, the Vermont Captive Insurance Association (VCIA) presented its industry service award to Brady Young of Strategic Risk Solutions. Recipients are chosen annually by the VCIA Board of Directors in recognition of VCIA members that have best supported the captive insurance industry and made contributions to its overall vitality and general welfare.
August 10, 2018 Read More

Update from Vermont on the Microsoft Captive Cease and Desist Order

Cease and Desist 480x377 
Read about what was said at the recent Vermont Captive Insurance Association Annual Conference surrounding the order from the Washington State Office of the Insurance Commissioner, which told Microsoft's wholly owned Arizona captive insurer to cease and desist transacting insurance business in the state and stop soliciting and writing insurance coverage for Washington insureds.
August 10, 2018 Read More

IRMI's "Wrap-Up Guide" Addresses Controlled Insurance Program Changes

Wrap-Up Guide 
Implementing a wrap-up or owner controlled insurance program for construction projects is a common approach to improving project safety, reducing the cost of risk, and ensuring all contractors are covered under a broad liability insurance program. IRMI's "Wrap-Up Guide" will help you avoid coverage gaps and common problem areas.
August 09, 2018 Read More

The NAIC To Establish Cannabis Insurance Working Group

Marijuana 
The National Association of Insurance Commissioners (NAIC) will establish a Cannabis Insurance Working Group to address the issue of insurance availability for the legalized cannabis industry. The group will work to better understand where insurance coverage gaps exist and to develop best practices for state insurance regulators.
August 09, 2018 Read More

Congratulations to Captive.com Sponsors Recognized with US Captive Awards

Applause-SF 
This year's US "Captive Review" Awards recognized, both on the short list and as award winners, 9 Captive.com sponsors in 11 award categories. According to the official website, the awards recognize captive insurance products and services providers offering high levels of excellence over the past year.
August 08, 2018 Read More