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.
In today's environment, it's imperative that a captive insurance company board, or at least a number of board members, be actuarially sound. Take a look at what captive board members should know about actuarial analysis and why as well as actuarial terms board members should understand.
Individuals and companies are often too quick to forget about investment risk, or assume the risk probability of the event is too small to happen. Real-life examples also illustrate that there will always be investors reaching for yield, especially in low-interest-rate environments, and when they should beware.
What is "numeracy," and why is it an important attribute for captive board members to have? This article examines numeracy, innumeracy, and relevant examples-with a specific look at insurance.
As in other areas of the captive insurance world, artificial intelligence (AI) is becoming an increasingly important component of the asset manager's tool kit. This article provides a brief primer on AI and asset management by way of a discussion with Alton Cogert of Strategic Asset Alliance.
The current insurance climate makes it imperative that captive insurers practice some type of underwriting discipline. This article lays out the reasons for maintaining an underwriting profit and what it takes to do so.
The ability to make educated guesses about the future has been enhanced over the last decade by the growth in artificial intelligence (AI) and predictive modeling. AI and predictive modeling could have applications for captive insurance.
The captive chapter in a new Organization for Economic Cooperation and Development (OECD) report discusses the numerous business (nontax) reasons why a multinational enterprise group might use a captive insurance company to manage risks within the group while setting out indicators for genuine insurance business.