Operations and Management

  Technology--Blockchain

Blockchain Technology Emerging in the Insurance Industry

In the Captive Wire newsletters from September 16, 2016, we reported on the recent meeting sponsored by the Bermuda Business Development Agency, which took place between the Bermuda Monetary Authority and 10 reinsurers in Bermuda and was facilitated by the technology consortium R3 Technologies. The meeting brought together technology, underwriting, and regulatory experts to explore ways that revolutionary distributed ledgers, based on blockchain technology, could fundamentally change their business and give Bermuda a leading role in a rapidly-evolving digital economy.
September 22, 2016 Read More
  Caution

Captive Insurers Beware: Pricing Erosion Spreads to Workers Compensation

The last truly hard market in commercial lines was 13 years ago, more than 4 years longer than the average soft market cycle length of 9 years. What began in the commercial property markets and then spread to casualty lines now seems to have claimed workers compensation as well.
September 16, 2016 Read More
  Oklahoma Flag

Oklahoma Workers Compensation Opt-Out Statute Ruled Unconstitutional

In a 7–2 ruling on September 13, 2016, the Oklahoma Supreme Court ruled that the state workers compensation opt-out statue is unconstitutional. The court ruling was based upon the fact that one group of injured workers was being treated differently from all other injured workers in the state.
September 15, 2016 Read More
  Shaking hands

A Captive Insurer's Actuary Role Should Evolve

Aaron Hillebrandt, a consulting actuary with Pinnacle Actuarial Resources, Inc., makes a strong case for captives viewing their actuary as a "strategic partner."
September 09, 2016 Read More
  Workers Comp

Opting Out of Workers Compensation

The International Association of Industrial Accident Boards and Commissions (IAIABC) issued a report in May 2016 that compares the benefits and coverage of the workers compensation opt-out alternative adopted by Oklahoma with the traditional compulsory workers compensation coverage required in most states.
July 29, 2016 Read More
  IntrinsicValue

Determining Intrinsic Value and the Risk-Free Rate

As captives have watched their book yields steadily decline over the last decade, the natural inclination has been to look for ways to arrest this fall.
July 15, 2016 Read More
  IRMI-Logo-2016-560x255

Insurance Case Law Summaries Resource from IRMI

Insurance Case Finder—a customized court case search engine from IRMI, the owner of Captive.com—is a great resource for captive managers and claims adjusters.
July 14, 2016 Read More
  Automation

Robotic Automation Will Transform Captive Insurance Industry

It is a brave new world out there, where robotic automation may be the new future of the insurance industry and of captive insurers.
July 08, 2016 Read More
  Letter Writing Communication

Captive Insurance Regulation: Is State Authority under Attack?

In an open letter to state insurance commissioners, Sean G. King, CIC Services, LLC, principal and in-house counsel, warns that, in his view, states must actively resist Internal Revenue Service (IRS) attempts at becoming the "de facto regulator of insurance" unless they are prepared to relinquish regulatory authority.
June 28, 2016 Read More
  Cyberrisk

Captive Insurance Companies Have Resource for Considering Cyber-Liability

Is cyber-liability coverage being considered for your captive insurance company? A benchmark research study, titled "2016 Cost of Data Breach Study: Global Analysis," sponsored by IBM and conducted by Ponemon Institute LLC, may help with your decision making.
June 23, 2016 Read More
  Feedback Meeting

Captive Insurance Independent Directors May Utilize Generative Thinking

Two articles this past week caused us to reflect on why independent directors may also enhance a captive insurance company board's ability to utilize generative thinking about the future.
June 22, 2016 Read More
  Future Empowerment

Captive Insurers Have Source of Ideas for Empowered Future

KPMG's Global Insurance practice has released a report, the first in a planned series, titled "Empowered for the Future: Insurance Reinvented." The report is based on findings from a survey of 70 insurance executives.
June 16, 2016 Read More
  Millennial Workplace

Captive Insurance Company Culture Key to Meeting Talent Need

In this follow-up to our earlier article titled "Captive Insurance Company Culture and Values Matter," we explore how culture and values interact with the need to attract new talent into the captive insurance industry.
June 10, 2016 Read More
  Culture Matters Featured News

Captive Insurance Company Culture and Values Matter

Culture and values matter in the captive insurance industry, believes Captive.com coeditor John Salisbury, whose experience as a captive insurance company chief executive officer supports this conclusion.
June 08, 2016 Read More
  Digital Marketing

Insurance Distribution: A Peek into the Future

One challenge for multistate group captive insurance companies, including risk retention groups, is marketing their program coverages and services.
May 27, 2016 Read More
  Charting New Territory

Captive Insurance for Employee Benefits: "Pioneers" Surveyed

It has been more than a decade since the first two companies gained prohibited transaction exemptions from the U.S. Department of Labor in 2000 and 2003. A total of 30 companies have since secured prohibited transaction exemptions, and they share their experiences in a white paper recently published by Spring Consulting Group.
May 25, 2016 Read More
  Future Concepts

A Concept Ahead of Its Time: Creating and Operating a Virtual Captive

As the National Risk Retention Association (NRRA) has announced its creation of a virtual company to promote discussion at its upcoming conference, Captive.com coeditors John Salisbury and John Foehl want to contribute to that discussion by sharing their personal experiences in creating and operating a virtual captive.
May 12, 2016 Read More
  Taxicab

Captive Insurance: Headed for "Uberization"?

Mike Cagney, the chief executive officer, chairman, and cofounder of SoFi, was interviewed for an April 29, 2016, "Wall Street Journal" article, which says that the premise behind this new FinTech start-up is to move lending away from brick-and-mortar banks to a smartphone app.
May 04, 2016 Read More
  Board of Directors

Captive Insurers Need Independent, Experienced Directors, Article Says

An article written by Andrew J. Barile that appeared recently in "Risk Management Monitor," the official blog of "Risk Management" magazine, explains the increased need for captive insurers to have board members who are independent and experienced in insurance.
April 26, 2016 Read More
  Cyberrisk

Captive Insurance Actions and Financial Statement Noted in NAIC Annual Report

The National Association of Insurance Commissioners (NAIC) has issued its 2015 Annual Report, titled "To Serve & Protect in the Digital Age."
April 25, 2016 Read More