Insurance Captives Crash and Burn for These Reasons
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. Also fundamental are strategic executable plans that are driven by management directed, again, on the long term. Mr. McElhiney also emphasizes that there is no substitute for effective governance and oversight in the form of sufficient risk management and controls over liabilities along with a prudent investment strategy. Outside service providers can provide what is needed to assist the organization in accomplishing its goals.