Articles

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

Captive insurers utilize reinsurance to mitigate risks, stabilize earnings, and comply with regulatory requirements. They may operate as direct insurers or as reinsurers through fronting companies, which allows them to access broader services and potentially achieve tax benefits, while maintaining compliance across various jurisdictions. Read More

Insurance-linked securities (ILS) let insurers transfer risk to investors, boosting reinsurance capacity and offering diverse, higher-return investments. Read More