The Financial Accounting Standards Board has issued ASU 2015–09 for nonpublic, calendar year-end insurance company filers. This Accounting Standards Update requires additional disclosures to provide better insight into an insurer's initial claim estimates and subsequent adjustments and to help financial statements users understand the frequency, severity, and timing of future cash flows related to the estimated claim costs. This article summarizes the new requirements.
What new ideas, technologies, and ways of conducting our lives do we see impacting our economy and financial markets? The future of investing for insurers, in the next 7–10 years, will see artificial intelligence and especially machine learning having a very pronounced impact on our careers, companies, and daily life.
One of this editor's favorite songs is Elton John's "Where to Now St. Peter?" from the 1970 album "Tumbleweed Connection." It seems extremely apropos to the bond market after the recent election results.
Glenn Saslow, CPA, partner at Crowe Horwath LLP, recently offered a glimpse into his auditing experience with the captive insurance industry.
Alton Cogert, president and chief executive officer of Strategic Asset Alliance, recently posted a blog on the Strategic Asset Alliance website offering the four specific questions that will lead to a more meaningful and useful investment manager meeting.
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.
The outlook for Golden Insurance Company, RRG, has been revised from stable to negative by A.M. Best, and its financial strength rating of B (Fair) has been affirmed. The revised outlook is worth the review of all in the risk retention group (RRG) community. The rating reflects issues that every RRG should be concerned about as they seek to maintain financial and operational sound companies.
The October 2016 issue of "Captive Insurance Company Reports" features a broad range of articles that are of interest to captive owners, managers, and staff.
The low interest rate environment is "the single biggest problem [for insurers] we have in the workers comp market right now" says John Leonard, president and chief executive officer of Maine Employers' Mutual Insurance Company.
The U.S. Securities and Exchange Commission (SEC) recently instituted new regulations governing institutional money market accounts. The historical context for this change dates back to the financial crisis of 2007–2008.
The Captive Insurance Council of the District of Columbia (CIC-DC) will open its 2016 Annual Conference on Tuesday, October 18th, with a networking reception, followed by a full day of educational sessions on October 19th. The Conference will be held at Loews Madison Hotel in Washington, DC.
Most captive owners and managers, if they follow the Federal Reserve at all, probably focus on the pronouncements made from the Federal Open Market Committee (FOMC). The latest release was on September 21, 2016, and concerns the Federal Reserve's short-term outlook and its expectations for changes to interest rates. The release on the 21st contained the following language.
According to Demotech's Douglas Powell, the bottom line for risk retention groups (RRGs) at the conclusion of the second quarter of 2016 is "that these specialty insurers continue to exhibit financial stability."
Captive Insurance Companies Association (CICA) has scheduled a webinar, titled "Brexit and the Impact on the Captive Industry," to be held at noon (CDT) (1:00 p.m. ET) October 20, 2016.
The A.M. Best Rating of Community Hospital Alternative for Risk Transfer (CHART) Risk Retention Group (RRG) has been upgraded to A- (Excellent) by A.M. Best.
The Hawaii Captive Insurance Council Annual Educational Forum is scheduled to be held October 12–14, 2016, at the Hilton Hawaiian Village on the island of Oahu, Hawaii. There are several topics featured at the Educational Forum that standout from other conferences sponsored by state captive associations.
The July 2016 issue of Milliman's "Benefits Perspectives: Current Issues in Employee Benefits" features two excellent articles on helping employees with their retirement plans.
Here are some upcoming webinars and posted videos that will be of interest to anyone in the captive insurance industry.
While captive owners and managers pay particular attention to the liability side of the balance sheet (i.e., claims reserves), recent news articles got us thinking about the asset side as well.
The financial strength rating of B+ (Good) for National Independent Truckers Insurance Company, A RRG (NITIC) has been affirmed by A.M. Best, and the outlook has been revised from stable to positive.