Capstone Associated - Avrahami v. Commissioner


Bruce Wright

How the 2017 Tax Law Affects Captive Insurers

Following the passage of the Tax Cuts and Jobs Act by the US Congress, met with Bruce Wright of Eversheds Sutherland to document his take on the primary impacts of the tax law on the captive insurance industry. According to Mr. Wright, a number of the law's provisions may affect captives.
January 03, 2018 Read More
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Fight To Protect Restoration RRG and Other RRGs in Wisconsin Continues

In what the National Risk Retention Association says is a win, on January 12, 2018, in a case involving Restoration Risk Retention Group (Restoration RRG), the US Court of Appeals for the Seventh Circuit vacated and remanded the case back to the US District Court for the Western District of Wisconsin.
March 12, 2018 Read More
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Where Things Stand—Insurance, Reinsurance, and Alternative Capital

As we approach the end of the first quarter of 2018, where do insurance market conditions stand? What are the forces driving market conditions, and what do captive insurers need to know?
March 07, 2018 Read More
Lynn Sheils-SF

What Are the Key Claims Handling Considerations for Captive Owners?

When a captive insurer is considering whether to self-administer claims or to handle with an outside third-party administrator, Lynn Sheils, general counsel of EWI Reinsurance, advises that the captive owner should be thinking about three key areas: insured coverage lines, anticipated claims volume, and required captive resources.
March 05, 2018 Read More

5 Top Tips for Building a Board of Directors

The role of the board of directors has evolved over the last decade. Today's boards need to be more strategically focused. We offer some top tips for building your captive board from scratch or reinventing a board for a more mature captive.
February 28, 2018 Read More
Steve McElhiney-SF

Commutations, Loss Portfolio Transfers, and Assumptions for Runoff

Steve McElhiney, president and CEO of EWI Reinsurance, explains that different core reinsurance transactions may be employed to manage runoff liabilities depending on what drives the transaction. The common tools used for runoff transactions include commutations, loss portfolio transfers, and assumption agreements (novations).
February 26, 2018 Read More
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CICA President Dan Towle Embraces "The Challenge of Change"

The mission of the Captive Insurance Companies Association (CICA) is to be the premier global domicile-neutral captive insurance association and the best source for unbiased information, knowledge, and leadership for captive insurance decision-makers. recently touched base with CICA President Dan Towle to discuss its upcoming annual international conference.
February 23, 2018 Read More

Tom Hebson—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 Tom Hebson. He talks about how his career evolved, the state of the workers compensation markets, and trends captive insurers should be watching.
February 21, 2018 Read More
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Why Letters of Credit Are the Most Popular Option for Captive Insurers

Martin Ellis, manager of Comerica Bank's Captive Insurance Group, explains why letters of credit (LOCs) are the most popular collateral option for captive insurers. An LOC is a simple one-page document that is universally accepted and governed by international customs and practices.
February 20, 2018 Read More
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A View from the Cockpit: Systems and Controls of Good Captive Managers

Successfully managing a captive insurance company involves many functions, including financial accounting, corporate governance, underwriting and risk management, regulatory reporting, and overseeing the work of various service providers. Captive managers should have in place a system of organizational controls that provides accurate and thorough administration and reporting of these functions.
February 19, 2018 Read More

Recent News

New "Cyber-Physical" Risk Modeling for Property Insurers

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According to RMS, the risk of insurance losses through physical damage to property increases as hackers target control systems linked to the Internet. The firm has responded with a new class of "cyber-physical" risk models that explore a range of cyber-attack scenarios that can lead to physical property damage.
March 16, 2018 Read More

Vermont Enhances Branch Captives and Standardizes Annual Filing Date

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Vermont's latest captive insurance legislation recently signed into law includes regulatory enhancements for branch captives as well as the standardization of the state's annual filing date for annual reports and premium taxes.
March 16, 2018 Read More

Pinnacle and Carfax Connect To Deliver Data Analytics to Auto Insurers

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Pinnacle Actuarial Resources and Carfax Banking & Insurance have launched a data analytics group to deliver actionable, data-driven insights to automobile insurers to help them benchmark their book of business against the broader market and identify adverse selection trends in areas such as annual mileage, ownership history, and damage events.
March 15, 2018 Read More

Chansky and McElhiney To Chair and Vice Chair CICA Board

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Joel Chansky, consulting actuary, Milliman, Inc. has been elected chair of the board of directors of the Captive Insurance Companies Association (CICA). In addition to Mr. Chansky, the board elected Steve McElhiney as vice chair. Mr. McElhiney is president of EWI Re, Inc.
March 15, 2018 Read More

Capstone Examines Avrahami in New Captive Management Resource

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Capstone Associated Services has released a new captive management resource that discusses the captive insurance industry case Avrahami v. Commissioner, 149 T.C. 7 (2017). According to Capstone, the collective conversation has grown—with abundant misunderstandings—since the decision was handed down by the Tax Court in August 2017.
March 14, 2018 Read More

CICA Honors Captive Industry Contributors at Its Annual Conference

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At its annual International Conference, the Captive Insurance Companies Association (CICA) honored Energy Insurance Services, Inc. (EIS), with the CICA 2018 Outstanding Captive Award and the European Captive Insurance and Reinsurance Owners' Association (ECIROA) with the CICA Distinguished Service Award.
March 14, 2018 Read More

Gary Osborne Appointed Vice President of Alternative Risk Programs for Risk Partners

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Gary Osborne has been appointed vice president, Alternative Risk Programs for Risk Partners, a provider of customized insurance and risk management solutions to commercial clients. Mr. Osborne will oversee the growth of the captive and alternative market business and large complex risks, as well as develop risk sharing programs.
March 13, 2018 Read More

Captive Insurance Is a Strategic Tool for Managing Hospital Cyber Risk

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In a recent interview, Cleveland Clinic's Executive Director of Enterprise Risk and Insurance, Charles Kolodkin, and Clearwater Compliance's CEO, Bob Chaput, discuss steps in developing a hospital cyber risk management strategy and share how captive insurance companies prove to be critical in the ongoing effort to manage and reduce cyber risk.
March 13, 2018 Read More

RAA Reports US Reinsurers Close 2017 with Deteriorated Combined Ratio

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A Reinsurance Association of America (RAA) survey of reinsurers' statutory underwriting results reveals the combined ratio for a group of 18 US property and casualty reinsurers was 108.2 percent during the 12 months that ended December 31, 2017, deteriorating from the 95.2 percent combined ratio reported for the same period in 2016.
March 12, 2018 Read More

Guernsey Finance Strengthens Hong Kong Presence with New Appointment

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Guernsey Finance, the promotional agency for the island's finance industry, has announced that its dedicated Hong Kong presence is paying dividends as it appoints a permanent Hong Kong representative, Dorothy Kwok.
March 09, 2018 Read More

Guernsey Captive Insurer To Cover Complex Litigation and Arbitration

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Guernsey-based arbitration and litigation finance provider Burford Capital will establish its own insurance company, Burford Worldwide Insurance, in Guernsey to offer legal finance clients a new insurance product to address adverse costs risk for the larger complex commercial litigation and arbitration market.
March 09, 2018 Read More

IRMI: Indianapolis Agribusiness Conference Registration Now Open

Registration for the 2018 Emmett J Vaughan Agribusiness Conference (AgriCon), to be held June 6–7, 2018, at the Westin Indianapolis in Indianapolis, Indiana, is now open. This will be the second of three planned regional conferences focusing on risk management and insurance for farms, ranches, and other agribusinesses.
March 08, 2018 Read More

NAIC Releases 2017 Property-Casualty Insurer Market Share Data

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The National Association of Insurance Commissioners (NAIC) recently released data on property-casualty insurers. The data include market share information indicating the degree of market concentration in lines of business and identify leading insurance writers. The 2017 market share data include countrywide direct written premium for the top 25 insurers.
March 08, 2018 Read More