Eversheds Sutherland provides us with an overview of the US-EU covered agreement. The agreement will eliminate collateral and local presence requirements for qualified US reinsurers operating in the EU insurance market, and will eliminate the requirement for collateral for qualified EU reinsurers operating in the US insurance market.
After two consecutive losses for taxpayers involved in small captive insurance programs, some may consider exiting their small captive insurance program. Exiting a captive, however, may be time consuming and expensive. Many captive owners will need to take into account numerous issues and make some difficult decisions.
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.
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.
In evaluating whether captive insurance makes sense for your business, Stewart Feldman, CEO of Capstone Associated Services, says that attention should focus on the risk management issues and the business exposures.