According to Karin Landry, a managing partner with Spring Consulting Group LLC in Boston, after captive insurance companies are set up, their parents should periodically review the risks their captives are covering. At a minimum, this assessment should be every 5 years and, in some cases, more frequently.
This primer for captive insurers on the concept of risk-based capital (RBC) describes the four basic components of RBC and how the components fit together to arrive at the ultimate ratio.
Captive board members should understand several key concepts. Chief among them is liquidity and how it impacts their captive. This article provides a basic primer on liquidity for both new and seasoned board members.
Are captive insurers participating in the innovation and productivity changes reshaping the insurance industry? We discuss some recent trends and look at three key technologies impacting the insurance industry.
Cyber-security threats continue to grow. What's your captive's cyber-security risk profile? Developing a risk profile provides your captive with a clear illustration of the threats it faces and enables you to begin a proactive process to counter these risks.
Machine learning is spreading quickly across many industries, including the insurance sector with applications in actuarial analysis, and is showing promising results for making better predictions and automating manual tasks. Advances in cloud computing provide the ability to speed up the time it takes to do so.
Parametric coverage is not an indemnification product. Instead, with parametric coverage, a benefit payable is determined in advance of the policy purchase by estimating the loss as accurately as possible, subject to certain conditions being satisfied. The policy cost is based on a predetermined trigger.