Captive Operations & Services Videos

Captive Feasibility | Captive Operations & Services | Hugh Rosenbaum | Retired Principal of Towers Watson

"Captive Business Is the Best Business” has been a mantra of risk professionals since the early days of captive insurance. Captive insurance pioneer Hugh Rosenbaum explains the rationale behind the mantra, which largely relates to the degree of underwriting control captive owners may exercise.

Captive Feasibility | Steven McElhiney | President & CEO | EWI Re, Inc.

While insurance captives can be a powerful risk management tool, they also run the risk of being unsuccessful if not managed properly. In this video, Steve McElhiney, president and CEO of EWI Reinsurance, discusses the importance of having a consistent focus on the specific need that the insurance captive was formed to address. Effective governance and management direction, including both annual plans as well as more long-term goals, are critical for the success of an insurance captive. In addition to the risk controls and investment strategy that must come from the insurance captive itself, Mr. McElhiney also gives some examples of the types of service providers that can assist in fulfilling the organization's goals.

Captive Operation and Services | Brady Young | President & CEO | Strategic Risk Solutions

For interviewing and selecting a captive insurance company manager, Brady Young of Strategic Risk Solutions says to look for industry and general experience in the captive insurance business, familiarity and experience with the domicile in which the captive insurance company is to be located, and the capability of the manager to utilize technology efficiently to meet the information availability and information security needs of the captive insurance company.

Captive Operation and Services | Brady Young | President & CEO | Strategic Risk Solutions

According to Brady Young of Strategic Risk Solutions, a captive insurance company manager must provide timely, regular financial reporting and coordinate services from actuaries, auditors, investment managers, and banking associates. This manager must also organize regular meetings required by the captive insurance company and act as a liaison with regulatory bodies within the domicile.

Captive Operation and Services | Group Captives | Michael O’Neill | CEO & President | ACIG

Being part of a group captive insurance company influences members toward better risk management of fleets and sites and benchmarking of risk management and networking with other members of the group captive insurance company to discuss and manage common risk exposures, says Michael J. O’Neill of ACIG in this video.

Captive Operation and Services | Group Captives | Michael O’Neill | CEO & President | ACIG

Michael J. O’Neill of ACIG explains the importance of having a process in place to bring new members of a group captive insurance company up to speed on what their membership will mean for their own company and how it will affect their operations. Communication channels between the group captive insurance company and its members should be firmly established early in the new relationship.

Captive Operation and Services | Group Captives | Michael O’Neill | CEO & President | ACIG

An important thing to keep in mind in order to successfully run a group captive insurance company, according to Michael J. O’Neill of ACIG, is that its members need to be effectively handling their safety, quality, and document retention programs. Strategies toward achieving these goals include networking committees, benchmarking, and competitive ranking within the group so that each member is striving not only for its own retention goals but for the group’s goals as well.

Captive Operation and Services | Alan Fleming | Chairman | Airmic

Alan Fleming of Airmic offers tips for optimization of a captive insurance company that include attending conferences for sharing ideas with others in the same situation and for getting input from professionals in the field, using multiple branches of a company to manage multiple insurance angles, involving the board of directors directly in the captive insurance company’s business, and avoiding conflicts with human resources where employee benefits are concerned.

Captive Operation and Services | Gary Bowers | Partner | Johnson Lambert LLP

Captive Operation and Services | Gary Bowers | Partner | Johnson Lambert LLP

Gary Bowers of Johnson Lambert details three areas auditors are concerned with when dealing with captive insurance companies: (1) Taxes—such as discounting of lost reserves or premium, things that may need to be adjusted on the financial statements; (2) Reserves—continuously checking to be sure that the data the actuary is using is qualified, good data; (3) Investments—more of a concern recently in terms of alternative financial vehicles being used by companies and how those financial instruments must be handled on financial statements, for instance.

Captive Operations & Services | Steven McElhiney | President &  CEO | EWI Re, Inc.

In this video, Steve McElhiney, president and CEO of EWI Reinsurance, provides examples of some of the specific benefits that an insurance captive can provide for an organization. Originally formed with approximately $250,000 in statutory capital, the insurance captive discussed in this video now provides $26 million in economic value and serves to address hazardous businesses with high severity risks. Mr. McElhiney also discusses how an insurance captive can address issues like catastrophic loss and restrictive sublimits with solutions that may not be available in the traditional marketplace.