Articles

To build an effective board for a captive insurer: develop a clear mission, recruit diverse skills, keep the board size manageable, establish clear roles and governance rules, and foster a culture of healthy debate. These steps ensure comprehensive oversight and efficient decision-making, enhancing governance and performance. Read More

Learn how to identify and address "bad directors" in captive insurance companies to ensure effective governance and protect your organization's interests. Read More

This article examines how boards can take a more integrated approach to governance by aligning leadership, culture, and risk oversight. With relevance to captive insurance structures, it highlights the importance of adaptability, board composition, and proactive engagement in navigating evolving risks and supporting long-term organizational resilience and strategic decision-making. Read More

Spring Consulting recommends regular refeasibility studies for captive insurance to align with shifting risk profiles and regulations. By reviewing performance and financing strategies, captives can continue to meet organizational goals efficiently, ensuring their structure remains relevant and sustainable in an evolving risk landscape. Read More

We take a look at some key concepts and reinsurance contract clauses that can help minimize the likelihood of a disagreement with your reinsurers. And, should these disagreements arise, the concepts and contract wording can provide additional protection to a captive insurance company. Read More

Premiums paid to a captive insurance company are deductible for federal income tax purposes only if the arrangement qualifies as true insurance. This requires risk transfer, risk distribution, and alignment with common insurance principles, as recognized by the Internal Revenue Service and courts. The structure and underlying risk profile ultimately determine deductibility. Read More

Cell captives, including protected cell companies, offer cost-effective self-insurance with shared expenses and lower capitalization, gaining popularity for hard-to-insure risks. Read More

Insurance-linked securities (ILS) are financial derivatives based on insured loss events, allowing insurers to transfer risk to capital market investors, offering diversification and potential better returns. Read More