Articles

Captive insurance company boards must go beyond financial literacy and develop a solid understanding of key actuarial principles. Actuarial literacy enables better oversight of reserves, pricing, and risk strategy—helping captives stay solvent and effective. Training and clear communication with actuaries are essential for modern governance. Read More

Captive insurance managers play a critical role in compliance, governance, financial oversight, and communication. Their work protects the captive's best interests while supporting strong relationships with regulators and stakeholders, helping ensure operational success and long-term stability. Read More

In this article by Robert Walling, Pinnacle Actuarial Resources, he discusses how the use of a peer review of the consulting actuary's work results in better corporate governance. Given the lack of insurance expertise on many captives' board of directors, the use of a peer review is certainly justified. Read More

Captive insurance companies pursue credit ratings to strengthen corporate governance, improve transparency, and reduce costs. A strong rating reassures reinsurers and fronting companies, potentially lowering fees and premiums. Additionally, captives use the rating process to benchmark performance and gain insights into financial health and best practices. 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

Foreign Account Tax Compliance Act (FATCA) mandates captives, especially non-US ones, to follow US reporting rules on international payments and transactions. Captives must identify and report US-related payments, with specific requirements based on their classification as financial or nonfinancial entities. Compliance aims to ensure transparency regarding foreign assets owned by US persons. Read More

Captive insurers must adapt to demographic and technological changes by developing a robust talent acquisition strategy. With millennials becoming the dominant workforce, strategies must focus on tech skills, diversity, and strong employer branding. Effective engagement and proactive succession planning are key to maintaining competitiveness and operational efficiency. Read More

Cash is king. This is especially true for captive insurers, since they typically have fewer margins for error. Captive board members should understand their captive's cash flow, so let's discuss some key areas for exploration and understanding. Read More