Operations and Management

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Blockchain: Accessing Its Value

Many readers may be inclined to ignore blockchain concepts or defer consideration until clearer information and evidence are available. However, disregarding blockchain rather than actively understanding it could put an organization, including captive insurers, at a competitive disadvantage compared to others who move to embrace its full context.
January 15, 2018 Read More
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2017 "Workers' Compensation Benchmarking Study" Releases Best Practices Report Card

The recent 2017 "Workers' Compensation Benchmarking Study" measures industry-wide advancement in claims management over the past 3 years. The study validates how and what higher performers are doing differently than lower-performing peers to reveal a robust profile of the successful claims organization.
January 02, 2018 Read More
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How To Manage a Captive More Efficiently

Managing a captive efficiently comes down to having a streamlined approach. Captive managers coordinate multiple pieces, such as actuaries, auditors, regulatory bodies, and financial statement preparation. A captive manager may want to look at a firm to help with back office support, according to Jeremy Colombik of Management Services International.
December 18, 2017 Read More
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Assessing and Quantifying Cyber-Security Exposure and Cyber-Risk

As cyber-attacks occur with increasing severity and frequency, cyber-risk has emerged as a critical risk exposure. Furthermore, current and future regulation will require a reliable, evidence-based approach to risk assessment. In this article, Milliman outlines actionable steps for companies looking to assess and quantify their cyber-exposure.
December 11, 2017 Read More
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How a Captive Insurer Can Drive Superior Cost of Risk Results

Captive insurers can be used to support both strategic and tactical risk management initiatives to drive superior cost of risk results. Some strategies include tangible costs, while others are intangible. Glenn Peterson of EWI Re identifies and discusses intangible issues that can become tangible, thereby adding to an organization's cost of risk.
December 04, 2017 Read More
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The Challenge of Managing Millennials

Managing millennials can be challenging for human resources departments. Many myths and broad generalizations about this generation have emerged. However, there are risks involved with relying too heavily on generalizations for managing any particular demographic.
November 29, 2017 Read More
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Reimagining History Can Benefit Insurance Risk Analysis

Board members, policyholders, policymakers, risk managers, and others stand to gain from a Lloyd's/RMS report that encourages insurers to think about risk in a different way by highlighting counterfactual analysis and its potential to mitigate data bias, test model results, analyze tail risk, and identify potential high-impact events.
November 03, 2017 Read More
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Can the Black-Scholes Model Be Used for Captive Insurance Premiums?

Pinnacle Actuarial Resources' Derek Freihaut and Tim Mosler share their thoughts on the viability of applying a specific mathematical model, Black-Scholes, in estimating the maximum premium appropriate for a captive insurance company. Should the Black-Scholes pricing model be used to estimate captive insurance premiums?
October 30, 2017 Read More
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Butler University Provides a Tailored "Captive" Talent Crisis Solution

Butler University is hard at work providing a tailored, student-driven "captive" solution for the insurance industry's growing talent crisis. The unique strategy of Butler University's risk management and insurance program captive formation is that, unlike other universities with similar programs, it is completely driven and led by millennials.
October 11, 2017 Read More
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Employee Benefits as a Share of Payroll at Lowest Level Since 1980

A report from the National Academy of Social Insurance titled "Workers' Compensation: Benefits, Coverage, and Costs" has revealed that workers compensation employer costs as a share of payroll declined in 2015, reversing a 4-year trend, and benefits as a share of payroll fell for the fourth straight year.
October 06, 2017 Read More
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Actuaries Adapt to Climate Change Using New Tools

Actuaries are rising to the challenges posed by climate change. The Actuaries Climate Index (ACI) and the forthcoming Actuaries Climate Risk Index (ACRI) were created to help actuaries address the challenges climate change has created and respond to upward trends in weather-related losses.
September 13, 2017 Read More
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How To Optimize a Captive Insurance Company

Steve McElhiney of EWI Re, Inc., discusses a time-tested approach to optimizing a single-parent captive insurance company and overlays this approach with key success factors that may be integrated to achieve long-term economic value and superior risk control attributes.
September 06, 2017 Read More
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How Some Captive Insurers Are Using Technology To Mitigate Risk

Industry panelists in Vermont recently discussed how technology is currently being used to mitigate risk in different industries. With advances in technology, organizations and captive insurers are discovering new ways to control costs, improve resource efficiency, and compete more successfully.
August 24, 2017 Read More
  Jeremy_Colombik_video

What Makes a Captive Insurance Company Successful?

What makes a captive insurance company successful is understanding that it is a business, says Jeremy Colombik, president of Management Services International (MSI). In this Captive.com video, he outlines five key factors in making that business a success.
August 22, 2017 Read More
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The Emotional Intelligence Competencies of an Effective Leader

Understanding the difference between leading and managing is understanding the difference between winning and losing in cutthroat markets. Pure managers make the system work, but leaders make things happen. They make the people around them better. Effective leaders should pay attention to and work to master key emotional intelligence competencies.
August 16, 2017 Read More
  Global Technology-2-SF

Is Your Predictive Analytical Modeling Wrong?

"All models are wrong; some models are useful." Given how pervasive predictive analytical modeling has become in all corners of insurance, this quote serves as an important reminder that models are mere approximations of the real world. While beneficial, models should not be used as a substitute for critical thinking.
July 24, 2017 Read More
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7 Steps To Increase Employee Retention

Employee turnover is costly. In terms of annual salary, cost estimates for losing a position to turnover range from 30–150 percent (hourly employees) up to 250 percent (sales/senior leadership). Developing a strategy that follows seven key steps is critical to the long-term success of an overall employee retention plan.
July 19, 2017 Read More
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Missouri Tort Reform Brings Fairness to Claims Settlement Process

Missouri has taken important steps toward improving its legal climate with the enactment of comprehensive insurance tort reform legislation, SS/SCS/HCS/HB 339 and 714, according to the Property Casualty Insurers Association of America. This bill will help curb the abuses associated with § 537.065 and the time-limited demand settlement process.
July 19, 2017 Read More
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Benchmarking Is the Process of Improving Performance

Companies around the world use benchmarking to catapult their organizations to the top in their industry. Benchmarking is the process of improving performance by continuously identifying, understanding, and adapting outstanding practices and processes found inside and outside the organization. Almost any activity that can be measured can be benchmarked.
June 21, 2017 Read More
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Blockchain Technology: Transforming Insurance in Real Time

AIG, IBM, and Standard Chartered Bank have successfully piloted the first multinational, “smart contract”-based insurance policy using blockchain technology. The “smart contract” is a conversion of a multinational, controlled master policy and three local policies, providing a shared view of policy data and documentation in real time.
June 20, 2017 Read More