Corporate Governance

  Five Pillars-SF

5 Key Pillars of Captive Insurer Corporate Governance

As a captive owner or board director, what are the primary components of captive corporate governance? In this article, we look at five key pillars of corporate governance and provide a brief description of each facet.
November 01, 2017 Read More
  Actuarial Peer Review-SF

Corporate Governance and External Peer Review

In this article by Robert Walling, Pinnacle Actuarial Resources, he discusses how the use of a peer review of the consulting actuary's work results in better corporate governance. Given the lack of insurance expertise on many captives' board of directors, the use of a peer review is certainly justified.
October 18, 2017 Read More
  Board Room Table 600x300

A Captive Insurer Template for Corporate Governance Standards

The focus on corporate governance standards continues to receive both political and regulatory attention. As a captive board member or senior management, does your captive insurer meet the requirements set forth in the Corporate Governance Model of the National Association of Insurance Commissioners? We outline a practical exercise for your board to consider.
September 01, 2017 Read More
  Mission Statement-SF

Is Affordable Pricing an Impediment in Your Captive's Mission Statement?

Captive insurer mission statements are intended to be living, dynamic documents. Too often, they are crafted during the captive's start-up phase and then forgotten. Most captive mission statements contain references to affordable pricing. Given the ongoing market conditions, it may be time to remove this reference and refresh your mission statement.
July 17, 2017 Read More
  Young Professionals-SF

What Is Your Captive's Talent Acquisition Strategy?

Insurers understand that without an effective talent acquisition strategy, the right candidates will not be hired. Hiring the wrong people leads to turnover, which is costly in terms of time, money, and morale. Getting it right is vital to the success of any business, and captive insurers are not immune.
July 10, 2017 Read More

What Makes a Successful Risk Culture?

As captives have matured and continued to flourish, they are being called upon to expand the risks that they underwrite. Captive boards and management should work to understand that, as their risk appetite grows, so should their dedication to building a successful risk culture within the captive.
June 19, 2017 Read More
  Investment Report-SF

Captive Insurance Assets and Investment Policies

It is important for captive board members to be conversant in certain key concepts. This article, fourth in a series, looks at assets of captive insurers and the components of an investment policy.
March 13, 2017 Read More
  Board Member Learning-SF

Insurance Pricing—A Key Concept for Captive Board Members

Captive board members should become conversant in the key concepts applying to captives. This article, third in a series, looks at pricing coverage for captive insurers.
March 08, 2017 Read More
  New Member Sign-SF

Basics of Loss Development Triangles

As a member of the board of a captive insurance company, you have a responsibility to understand the key concepts that underpin how the captive performs. This second in a series of articles continues this educational process, focusing on the concept of loss development.
February 20, 2017 Read More
  Key to Success-SF

Key Concepts for New Captive Board Members

Captive insurance company board members have a responsibility to understand the key concepts that underpin how the captive performs. This is the first in a series of articles that explores these concepts, focusing on financial statements and actuarial reports.
February 13, 2017 Read More
  Audit Committee-SF

6 Audit Committee Concerns for Captives

One of the most important committees a captive should incorporate into its governance structure is an audit committee. This article presents 6 key audit committee takeaways from a KPMG survey, along with commentary related to captives.
January 11, 2017 Read More

Captive Insurers Have Resource for Generative Thinking Materials

One of the benefits of the large multinational reinsurers is the amount of research they produce. Captives looking for generative thinking materials for strategic discussions would be well advised to utilize this educational resource.
October 27, 2016 Read More

Insights on Corporate Governance—Redux

On Tuesday, August 30th, we published the article “Insights on Corporate Governance.” Now, the theory offered in that article—too restrictive governance policies can actually result in more fraud—has been bolstered from an unlikely direction, providing further food for thought for boards as they consider what their corporate governance policies and procedures should be.
September 06, 2016 Read More
  Checklist Featured

Governance Standards Checklist for RRGs and Captives

Risk retention groups (RRGs) face some common sense but rigorous policy and governance standards that need to be incorporated in their plan of operation.
September 01, 2016 Read More
  Signing Forms

Insights on Corporate Governance

All captives, as part of their annual independent audit, are aware of the questions routinely asked of senior management as to whether they are aware of any fraud within the organization. Certainly this issue has received greater scrutiny over the last decade as a result of some of the scandals that have arisen.
August 30, 2016 Read More
  Utah Flag

Board Governance: A Cautionary Tale for Group Captives

A recent audit by the Office of the Utah State Auditor of a public entity pool located in the state provides a cautionary tale to group captives about the need for strong board governance. We recognize that there are differences in public entity pools and group captives, with the major one being that public entity pools are funded by taxpayer dollars. However, a number of the points raised within the audit concerning how the pool is governed are applicable to group captives as well.
August 18, 2016 Read More
  Feedback Meeting

Captive Insurance Boards Should Consider Commonsense Principles

Last week a group of Fortune 100 business leaders including Warren Buffett and Mary Barra released a list of "Commonsense Corporate Governance Principles."
July 25, 2016 Read More
  Board Executive Session

Captive Insurance Company Boards Should Consider Executive Sessions

The question of whether a captive insurance company's board of directors should meet in executive session without the captive manager or chief executive being present has always been problematic. As captives have matured and become mainstream, this issue deserves additional analysis.
June 29, 2016 Read More
  A conference room table with a group of businesspeople having a meeting in the background

Captive Insurance Company Board Director: Prepare To Recruit

If your captive domiciliary regulator has not encouraged your captive to have a professional independent director knowledgeable about captive operations and finance, it will probably be doing so in the future.
June 15, 2016 Read More
  A conference room table with a group of businesspeople having a meeting in the background

Captive Insurance Company Boards: Questions To Ask for Effective Governance

In "Effective board governance: the healthy tension between management and the board," an article published in the April 2016 issue of "Financier Worldwide Magazine," author Hussain T. Hasan, RSM US LLP, explores how the growing areas of risk have caused a change in board governance.
April 08, 2016 Read More