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In this video, Gary Bowers of Johnson Lambert provides captive owners with tips on how to choose an auditor or tax preparation firm.
Gary Bowers of Johnson Lambert details three areas (taxes, loss reserves, and investments) auditors are concerned with when dealing with captive insurance companies.
Managing a captive efficiently comes down to having a streamlined approach. Captive managers coordinate multiple pieces such as actuaries, auditors, regulatory bodies, and financial statement preparation. A captive manager may want to look at a firm to help with back office support, according to Jeremy Colombik of Management Services International.
Jeremy Colombik, president of Management Services International, states that five factors come into play to make a captive insurance company successful: (1) determining the type of risk to put into the captive (actuaries/underwriters), (2) minimizing commercial insurance costs, (3) better risk management, (4) increasing risk awareness, and (5) tax benefits.
Martin Ellis, manager of Comerica Bank's Captive Insurance Group, says captive insurers mainly use letters of credit and reinsurance trusts for collateral.
Martin Ellis of Comerica's Captive Insurance Group says custody for captive insurers is the safekeeping of a captive's financial assets in an account.
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Martin Ellis, manager of Comerica Bank's Captive Insurance Group, explains why letters of credit (LOCs) are the most popular collateral option for captive insurers.
Stewart Feldman advises that a prospective captive owner should consider a number of factors before selecting a captive management team.
Captive insurance planning takes a team of people to put a program in place, according to Stewart Feldman, CEO of Capstone Associated Services.
Alan Fleming of Airmic offers tips for optimizing the use of a captive insurance company.
Steve McElhiney, president and CEO of EWI Reinsurance, explains that different core reinsurance transactions may be employed to manage runoff liabilities.
Steve McElhiney, president and CEO of EWI Reinsurance, explains that successful captive insurers are formed with a sufficient degree of risk focus along with a long-term economic focus and direction.
Steve McElhiney, president and CEO of EWI Reinsurance, provides examples of the benefits that a captive insurance company can provide to an organization's risk program. Many of these benefits, such as tailored insurance policies with broader coverages, provide organizations with broader overall solutions not attainable in the traditional marketplace.
Michael J. O'Neill of ACIG explains how being part of a group captive insurance company catalyzes members toward better risk management including general safety and quality issues as well as risk-specific concerns.
Michael J. O'Neill of ACIG explains the importance of having an onboarding process in place for new members of a group captive insurance company. This will serve to open up communication channels while highlighting changes to the new member's insurance program.
Michael J. O'Neill of ACIG discusses the importance of group captive members effectively handling their safety, quality, and document maintenance and retention programs and offers some strategies toward achieving these goals.
Captive insurance pioneer Hugh Rosenbaum explains the rationale behind the slogan, "Captive Business Is the Best Business," which largely relates to the degree of underwriting control captive owners may exercise and recognizes the captive's service to its members/original insureds.
The best practice for a captive insurer is to have claims handling procedures to ensure consistency in claims handling, like a traditional insurance company does, and to contemplate all of its needed claims handling resources.
A captive insurer's claims handling procedures should discuss all stages that are in the life cycle of a claim and include a variety of stages.
When considering claims self-administration or an outside third-party administrator, the captive insurer should be thinking about three key areas.
The most obvious pitfall a captive management team can run into is paying claims that are not covered under the captive policy.
There are numerous claims benefits associated with captive insurance. Taking control of their own claims gives captive owners the control they seek.
A reinsurer has the duty to pay unless it has been prejudiced. Prejudice may be easier to show if a captive insurer is not handling its claims properly.
Puerto Rico as a captive domicile is unique because it falls under US federal law, US customs, and FDIC, but it does have sovereignty granted by Congress.
For interviewing and selecting a captive insurance company manager, Brady Young of Strategic Risk Solutions says to look for experience in the captive insurance business, familiarity with the domicile, and the capability of the manager.
Brady Young of Strategic Risk Solutions explains the various responsibilities of a captive insurance company manager.