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Non-NatCat Insurance-Linked Securities: Identifying Opportunities

One of the most important market trends has been the rise in non-life insurance-linked securities (ILS) that transfer risks outside of the natural catastrophe space. Aaron Koch of Milliman provides an overview of "non-Nat-Cat" ILS market potential and offers his view on next steps.
December 13, 2017 Read More
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Assessing and Quantifying Cyber-Security Exposure and Cyber-Risk

As cyber-attacks occur with increasing severity and frequency, cyber-risk has emerged as a critical risk exposure. Furthermore, current and future regulation will require a reliable, evidence-based approach to risk assessment. In this article, Milliman outlines actionable steps for companies looking to assess and quantify their cyber-exposure.
December 11, 2017 Read More

2018 Reinsurance Outlook for Captives

Reinsurance is an integral part of most captive insurers' risk management programs. Due to a confluence of events, reinsurance pricing has been fairly benign over the last several years. However, this may change in 2018. Find out why captives need to focus on reinsurance renewals.
December 06, 2017 Read More
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How a Captive Insurer Can Drive Superior Cost of Risk Results

Captive insurers can be used to support both strategic and tactical risk management initiatives to drive superior cost of risk results. Some strategies include tangible costs, while others are intangible. Glenn Peterson of EWI Re identifies and discusses intangible issues that can become tangible, thereby adding to an organization's cost of risk.
December 04, 2017 Read More

Is Captive Insurance Right for Your Business?

Do the benefits of forming a captive insurance company exceed the costs? Jeremy Colombik, president of Management Services International, says that this boils down to educating the client of all the benefits that a captive insurance company may offer.
November 30, 2017 Read More
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The Challenge of Managing Millennials

Managing millennials can be challenging for human resources departments. Many myths and broad generalizations about this generation have emerged. However, there are risks involved with relying too heavily on generalizations for managing any particular demographic.
November 29, 2017 Read More
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KBRA's Unique Global Captive Insurer Rating Methodology

For captive insurers struggling to determine whether it makes sense to secure a financial rating, there is now a new option. Kroll Bond Rating Agency (KBRA) recently released its new Global Captive Insurer Rating Methodology. Carol Pierce shares her thoughts on the new methodology.
November 27, 2017 Read More
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Why Captive Investment Manager Due Diligence Matters

With the recent revelations concerning the issues at Guggenheim Partners and the New York state pension fund, captive insurers should consider how they conduct investment manager due diligence. Find out what precipitated the scandal and how captive insurers should consider conducting due diligence on money managers.
November 22, 2017 Read More
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Contrasting Risk Retention Groups and Captive Insurance Companies

It is said that all risk retention groups (RRGs) are captive insurance companies, but not all captives are RRGs. Learn about the key contrasts of RRGs and other types of captives, including the number licensed, scope of coverage, and interest in formation.
November 20, 2017 Read More

Recent News

Fitch Reinsurance Outlook Reveals Rate Increases Depend on ILS Appetite

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Fitch Ratings has updated its "Global Reinsurance 2018 Outlook" to incorporate the catastrophe losses incurred from Hurricanes Harvey, Irma, and Maria, as well as losses from the earthquakes in Mexico and wildfires in California, and shares its findings, warnings, and expectations for the sector. One expectation being that the key driver of the magnitude of future rate increases depends on the insurance-linked securities (ILS) market's appetite to invest more capital in reinsurance.
December 15, 2017 Read More

First Secondary Market Securities ILS Blockchain Trade Completed

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Two funds have performed a secondary market insurance-linked securities (ILS) blockchain trade in notes that were digitized on a private blockchain set up by Solidum Re, a Guernsey incorporated cell company.
December 15, 2017 Read More

Year over Year US Property and Casualty Prices Remain Nearly Flat

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In the latest "Commercial Lines Insurance Pricing Survey," Willis Towers Watson reports the continuation of nearly flat commercial insurance prices in the US during the third quarter of 2017. Price changes reported by carriers averaged less than 1 percent for the ninth consecutive quarter.
December 14, 2017 Read More

Fitch: US P&C May See Short-Lived Rate Improvement in 2018

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US property and casualty insurers' operating performance appears set to rebound somewhat next year following 2017's rough catastrophe-related losses, according to Fitch Ratings in its 2018 outlook report for property and casualty insurers, "Fitch 2018 Outlook: U.S. Property/Casualty Insurance." While Fitch's rating outlook is stable for P&C insurers, the fundamental sector outlook remains negative.
December 14, 2017 Read More

Expect Puerto Rico Captive Insurance Initiatives in 2018

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According to the Puerto Rico International Insurers Association (PRIIA), the US territory's insurance and financial services sector continues to grow with minimal interruption in the aftermath of Hurricane Maria and despite ongoing budget challenges. PRIIA said Puerto Rico has a strong and bright future ahead for insurance opportunities, including captive insurance company formations.
December 13, 2017 Read More

"CICR" Reports on Blockchain in Credit Insurance

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December's "Captive Insurance Company Reports" ("CICR") begins with a discussion of blockchain in the trade finance/credit insurance market. The same issue also reveals captivating details on a variety of other topics. Hurry to retrieve your IRMI Online or Vertafore ReferenceConnect copy. Nonsubscribers can learn more in the products section of
December 12, 2017 Read More

"IVANS Index" November Results Show Continued Month-to-Month Variance

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November's "IVANS Index: Premium Renewal Rate Index" findings show that the premium renewal rate change for the majority of standard commercial lines products remains in positive territory, while workers compensation continues to stay in negative terrain. Premium renewal rate change across the industry has remained mainly positive from month to month.
December 12, 2017 Read More

Beijing and Guernsey Move Forward on Captive Insurance Deal

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Guernsey-based Alternative Risk Management and Beijing Airport Captive Management Consulting will partner to create captive insurance structures and provide captive management services for businesses in China. The joint venture comes after the March 2017 signing of a memorandum of understanding between Guernsey Finance and the Beijing Airport Economic Core Zone.
December 11, 2017 Read More

Gail Olsen To Head Finance and Compliance for Atlas Management

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Charlotte-based Gail Olsen has been hired to head finance and compliance for Atlas Insurance Management (Atlas). Atlas is a leading independent insurance management firm, providing captive insurance consulting, formation, and management services in the major US and offshore captive domiciles.
December 08, 2017 Read More

Cayman and Bermuda Not Included in EU Tax Blacklist

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The European Union has completed its first ever list of noncooperative tax jurisdictions. The so-called blacklist document identifies 17 countries that fail to meet agreed tax good governance standards. In addition, 47 other "gray" listed countries have committed to addressing deficiencies in their tax systems and to meeting the required criteria.
December 08, 2017 Read More