Captive Basics

  Insurance Claim Form-SF

Claims Handling in Captives

Owners of captive insurance companies have an opportunity to take much greater control of the claims process than with traditional insurance. When this control is exercised via a well-thought-out-and-executed process, the result will be lower costs and a more successful captive. This article discusses some of the key considerations and decision points.
May 22, 2017 Read More
  Primer-Instructional-SF

How To Set Up a Captive Insurance Company: A 5-Step Primer

Interested in forming a captive? This how-to article explores the 5 key steps every risk manager should undertake in creating a captive. While providing the basic elements, links within the article allow you to delve deeper into most of these steps.
April 24, 2017 Read More
  Summit Meeting-SF

The Case for Centralized In-House Loss Control with Captive Insurance

Written by a practicing risk manager, this article outlines some of the potential advantages of embedding centralized loss control within a captive and how doing so can reduce the cost of risk.
March 20, 2017 Read More
  Actuarial Report-SF

A Guide to Actuarial Reports

There are numerous types of actuarial reports, and they can be as different as the actuaries who author them. This article gives guidance on which elements are required and which are a matter of style with the purpose of helping you to better understand actuarial reports.
March 15, 2017 Read More
  Graph Abstract-SF

Why Do Captives Get Credit Ratings?

While the need for ratings by traditional insurers is obvious, it is not so apparent for captives. This article explains why some captive insurance companies go through the credit rating process.
February 27, 2017 Read More
  Accounting Business Acronym RBC Risk-Based Capital 480 x 377

A Primer for Captives and RRGs on Risk-Based Capital

Gain a practical understanding of risk-based capital. What it is, how it is measured, how does ORSA fit in, and how does it impact your captive?
February 07, 2017 Read More
  Cybersecurity

5 Coverage Questions for Cyber-Liability in a Captive Insurer

Many captive owners are being asked to consider writing cyber-liability coverage in their captives. The idea has been discussed at numerous captive conferences over the last several years. Additionally, there are dozens of articles available on captive vendor websites that explore the possibility. Reading these articles can lead many owners and board members to conclude that cyber-liability coverage is worthy of pursuing.
December 20, 2016 Read More
  Stock Market

Legitimate Captive Insurance Companies Are Not Driven by Tax Planning Strategies

Here is a message that needs to be delivered to all those involved in advising, regulating, or legislating tax policy: captive insurance companies are genuine risk management organizations that add value to their owners.
December 16, 2016 Read More
  Train Tracks Sky

Captive Insurers and RRGs Could Benefit from Infrastructure Proposals

The Arent Fox law firm’s Government Relations group hosted a seminar on “What to Expect from Our New President & Congress” last week. Captive.com Editor Dan Labrie attended the panel discussions focused on three topics: Infrastructure, the Economy and the Likelihood and Nature of Comprehensive Tax Reform, and the Future of Obama Care and Health Care.
December 15, 2016 Read More
  Flat World Map

Bermuda Responds to "Tax Haven" Charge

Tax reform is on the agenda not only in the United States but elsewhere in the world, as well. A report of Oxfam, a global antipoverty agency, has joined those calling for corporate tax reform, and the Bermuda Business Development Agency responded quickly.
December 14, 2016 Read More
  Rental Application

Captive Insurance Basics: A Guide to Rental Captive Insurers

Rental captives are but one form of a captive insurance company. A captive insurer is an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.
December 13, 2016 Read More
  Insurance Risk Definition

Is ORSA a Future Requirement for Captives?

The National Association of Insurance Commissioners (NAIC) adopted the Risk Management and Own Risk and Solvency Assessment (ORSA) Model Act (#505), which was effective January 1, 2015, for certain large insurers and is required for state insurance department accreditation by January 1, 2018.
December 08, 2016 Read More
  Technology--Blockchain

Insurance, Technology, and Artificial Intelligence

Technology and Insurance: Are You Prepared for the Coming Disruptions? This was the name for the Pinnacle Actuarial Resources, Inc., APEX webinar on December 1, 2016. The hour-long presentation by Christopher M. Holt, ACAS, MAAA, and Legaré W. Gresham, FCAS, MAAA, focused on six new technologies and their ability to disrupt the liability insurance landscape.
December 06, 2016 Read More
  Globe

Captive Insurance World: What's Happening Now

Here are some recent and upcoming events in the captive insurance industry that may be of interest to our readers.
December 02, 2016 Read More
  New Management

Captive Insurer Established in Connecticut Offers Look at SOBC Corp. Process

The president and CEO of SOBC Corp. explains the acquisition process for distressed insurance companies and risk retention groups.
November 30, 2016 Read More
  New Jersey Flag

Captive Insurer Licensed To Reinsure Underground Storage Tank Owners in NJ

Founders Indemnity Group, Inc., was licensed by the New Jersey Department of Banking and Insurance on November 2, 2016.
November 28, 2016 Read More
  Workload

831(b) Captive Insurers and Advisers Face a Heavy Workload in the Next 90 Days

There is a lot to do in the next 90 days for captives and their material advisers who have made elections under 26 US Code § 831(b) of the Internal Revenue Code. The reporting requirements will be applicable to “[v]irtually all of the captives that have selected the 831(b) tax option,” according to John Colvin, an attorney at Colvin + Hallett and a panelist on the American Bar Association’s (ABA) Captive Insurance Committee’s webinar that was held November 9, 2016.
November 11, 2016 Read More
  IRS Building

IRS 70 Percent Loss Ratio for 831(b) Captive Insurers—Reasonable?

One of the sections in recent Internal Revenue Service (IRS) Notice 2016-66 that may be of concern to all captives, as well as commercial insurers, is the implication that an 831(b) captive with a loss and loss adjustment expense (LAE) ratio of less than 70 percent may not be an “insurance arrangement.”
November 10, 2016 Read More
  Montana Flag

Montana RRG CareConcepts Is in Liquidation

On May 23, 2016, the Office of the Montana State Auditor, Commissioner of Securities and Insurance (CSI), suspended the license of CareConcepts Insurance, Inc., a risk retention group (RRG), allowing the Insurance Department to take control and supervise CareConcepts. On August 8, 2016, the Montana CSI issued a court order, signed by a Montana District Court Judge, to commence liquidation of CareConcepts. On August 10, 2016, CareConcepts was placed into liquidation. Michael J. FitzGibbons, president of FitzGibbons and Company, Inc., was appointed as special deputy liquidator on August 22. Claims against CareConcepts have a deadline of March 31, 2017.
November 08, 2016 Read More
  Diploma

ICCIE To Collaborate with Colleges and Universities

At the National Risk Retention Association's (NRRA) 2016 Annual Conference in Chicago, Mitch Cantor, executive director of the International Center for Captive Insurance Education (ICCIE), announced a new program initiative. Recently approved by the ICCIE board of directors, this new program would allow ICCIE to share its curriculum with students in colleges and universities that have risk management programs. According to Mr. Cantor, “in most insurance and risk management programs, the topic of captives are explored but not directly taught. Only ICCIE offers this expertise.”
November 04, 2016 Read More