Operations and Management

  new ball game

A.M. Best "Whole New Ballgame" Explained

As discussed in an article last month, A.M. Best has proposed changes to its Best's Capital Adequacy Ratio (BCAR) model. A colleague of ours, Alton Cogert, president of Strategic Asset Alliance, recently posted a blog on InsurerCIO discussing his thoughts on the changes, especially concerning the impact on investments.
April 06, 2016 Read More
  Dollar bills viewed through magnifier with graph in background

Captive Insurance Upcoming Best Practices: Risk Appetite Statement?

Recently reported results from a 2016 Willis Re survey on global reinsurance and risk appetite indicate a trend that the captive market may want to follow and adopt.
March 23, 2016 Read More
  Bridge Infrastructure

Captive Insurers with Property Exposures Should Explore Infrastructure Risk Topic

A colleague's recent inquiry inspired us to explore the topic of infrastructure risk as an emerging area that captive insurance companies should at least consider.
March 22, 2016 Read More
  Court Ruling Gavel

Captive Insurers' Concerns over Regulations May Be Mitigated by Ruling

The inclusion of employee benefits within captive insurance companies continues to draw a lot of attention. A recent US Supreme Court ruling may help to mitigate concern over conflicting federal and state regulations.
March 21, 2016 Read More
  Insurance Apprentices

Captive Insurance Talent War

The captive insurance industry must become more proactive in attracting young people into its ranks to secure its future.
March 15, 2016 Read More
  A conference room table with a group of businesspeople having a meeting in the background

Captive Insurance Boards Need Education To Keep Pace

What is the board of directors role and responsibility in an organization when allegations of excesses occur? If the allegations are true, the senior management team is certainly responsible, but the board of directors also has a fiduciary responsibility to monitor what transpires.
March 14, 2016 Read More
  Doctor Stethoscope

Self-Funded Group Health Shared Savings Arrangements Intro Available

Self-funded group health benefit plan sponsors and those considering sponsoring such a plan can find an "Introduction to Shared Savings Arrangements and ACOs" in a recent Milliman "Benefits Perspectives" newsletter.
March 09, 2016 Read More

Captive Insurance for Cyberexposures Increasing

The growing use of captive insurance companies for cyberrisk coverage is the topic of a recent "Risk & Insurance" article that, interestingly, shows divergent points of view in terms of where the growth is occurring and how prevalent it is.
March 08, 2016 Read More
  Reputation Risk

Captive Insurance Can Be a Reputation Risk Solution

Reputation-linked captive insurance products can help foster better corporate governance and protect directors at the same time is a central theme of an article that appears in "Directorship."
February 18, 2016 Read More
  Exit Sign

Captive Insurance Exit Strategies, Solutions Topic of Webinar

In light of the number captives closed in 2015, the American Bar Association Business Law Section Captive Insurance Committee's webinar titled "Captive Exit Strategies and Solutions" was very timely.
February 16, 2016 Read More
  Organization Chart

Captive Insurance Operations: Is There a "Right Way" To Organize?

Captive insurance corporate governance and the roles of both the board and management are currently areas of focus of captive domicile regulators.
February 10, 2016 Read More
  WCF Logo FN

Conclusions and Random Tidbits from the 2016 World Captive Forum

The 2016 World Captive Forum just concluded. Here are a summary and random musings from the event.
February 08, 2016 Read More

Captive Insurers Should Understand Rating Model

Madison Scottsdale, an investment manager active in the captive insurance space, has published in the Winter 2015 edition of its quarterly newsletter a first-in-a-series article on the new A.M. Best stochastic Best's Capital Adequacy Ratio (BCAR) model being implemented for property and casualty insurers.
February 02, 2016 Read More
  Disability Insurance

Captive Insurers Should Watch Workers Compensation Issues

There are a number of workers compensation issues that captive insurers providing this coverage should be following. A recent Insurance Thought (ITL) article provides an excellent way to get an update.
January 29, 2016 Read More

Captive Insurance Industry Can Gain Insight from Study Results

What are the personality traits of an effective captive insurance executive? Captive insurer governing boards and executives may gain some insights for answering this question by reading the summary of a recent study of insurance executives conducted by Russell Reynolds Associates.
January 22, 2016 Read More
  Federal Home Loan Banks

Captive Insurance Eligibility Excluded in Final FHFA Rule

The Federal Housing Finance Agency (FHFA) issued a final rule on January 12, 2016, that will prevent captive insurers from becoming members of the Federal Home Loan Bank (FHLBank).
January 13, 2016 Read More
  Holding Globe

IAIS White Paper—Regulation and Supervision of Captive Insurers

The International Association of Insurance Supervisors (IAIS) adopted an "Application Paper on the Regulation and Supervision of Captive Insurers" late last month. The stated intention of the IAIS is for the paper to provide guidance for the government regulation and supervision of captive insurers or reinsurers.
December 10, 2015 Read More
  2015 Cayman Captive Forum

Five Years' Loss Data Is Minimum, Not Optimum, for Feasibility Studies

Provide actuaries with as much loss data as possible for captive feasibility studies.
December 02, 2015 Read More

Captive Insurers Have Opportunity in Reputational Risk Role

The key role captives can play in helping businesses protect against the potentially extensive damage a reputational occurrence can cause was the topic of a recent Delaware Captive Insurance Association (DCIA) 2015 Fall Forum presentation.
November 25, 2015 Read More
  Regulatory Authority

Captive Insurers May Be Impacted by Proposed NAIC Credit for Reinsurance Model Law

The National Association of Insurance Commissioners (NAIC) Reinsurance (E) Task Force has proposed revisions to the Credit for Reinsurance Model Law (#785)—Option 3 that would give state insurance regulators unlimited authority, beyond the current requirements, for a ceding insurer to get credit for reinsurance ceded.
November 13, 2015 Read More