As the capital markets continue to penetrate the traditional reinsurance markets, captive owners would do well to think outside the box. This article suggests ways owners might collaborate to create innovative capital market opportunities.
This is a market insider’s personal reflection on the future prospects for Lloyd's of London as it faces fundamental challenges around structure, regulation, and cost. Anyone with a captive using Lloyd's for reinsurance should consider the points in this narrative. While it is only one scenario, the thesis is worthy of reflection.
Rental captives are but one form of a captive insurance company. A captive insurer is an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.
Founders Indemnity Group, Inc., was licensed by the New Jersey Department of Banking and Insurance on November 2, 2016.
The Reinsurance Association of America (RAA) survey results for a group of 18 US property/casualty reinsurers show a 6.9 percent increase in net premiums for the 9 months that ended September 30, 2016, compared to the same period in 2015.
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 Connecticut Captive Insurance Association (CCIA) had its fifth annual Symposium October 12–13 at the Sheraton Stamford Hotel in Stamford, Connecticut. The theme for this year’s event was “Managing Risk in the New Economy.” Some of the distinguished guests attending the conference included Katharine Wade, the insurance commissioner for the state of Connecticut, and Jonathan A. Harris, commissioner of the Connecticut Department of Consumer Protection.
On September 28, 2016, Senator Mark R. Warner, D-VA, and Representative Richard E. Neal, D-MA, introduced companion legislation in both the Senate (S. 3424) and House of Representatives (H.R. 6270) "to amend the Internal Revenue Code of 1986 to prevent the avoidance of tax by insurance companies through reinsurance with non-taxed affiliates."
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.
The 17th Annual South Carolina Captive Insurance Association (SCCIA) Conference has an excellent program on tap for all who will be attending the meeting at The Mills House in Charleston, South Carolina, September 13–15. While online registration for the Conference is closed, onsite registration will be available each day starting at 7:00 a.m.
A Reinsurance Association of America (RAA) survey of a group of 18 US property-casualty reinsurers reports a 10 percent increase in net premiums in the 6 months that ended June 30, 2016, when compared with the same period last year.
The Arizona Captive Insurance Division reports it has issued four new licenses as of June 30, 2016. This represents a net 3 percent growth in its captive count, which totals 113. The 2016 growth reverses the termination of 11 captive license in 2015, which, coupled with the issuance of 7 new captive licenses, resulted in a net loss of 4 in its captive count.
The use of technology by risk retention groups (RRGs) and risk purchasing groups (RPGs) will be the theme of the 2016 National Risk Retention Association Conference, titled “Driving a Successful Future: Autonomous RRG.“ The conference is scheduled for September 27–29, 2016, at the Sofitel Water Tower Hotel in Chicago, Illinois.
Several recent news articles, including two we highlighted recently in "Captive Wire," got us thinking about whether captive owners are paying attention to the inherent risks currently roiling the reinsurance markets.
Attendees at the Vermont Captive Insurance Association (VCIA) 2016 Annual Conference next week (August 9–11) in Burlington, Vermont, will have the opportunity to hear a presentation on “Reinsurance Marketplace Trends.” Steve McElhiney, the president of EWI Re, Inc., and a past chairman of VCIA, will provide his first-hand insights about the changes and current state of the reinsurance market. The session is scheduled for 1:45 p.m. on Wednesday, August 10.
The 35th anniversary of Vermont's enactment of captive insurance legislation will be a multiday event starting Tuesday, August 9, during the Vermont Captive Insurance Association (VCIA) Annual Conference.
The Reinsurance Association of America (RAA) has released its Quarterly Underwriting and Operating Report for the first quarter of 2016.
It is a brave new world out there, where robotic automation may be the new future of the insurance industry and of captive insurers.
Bermuda, the world's largest captive insurance domicile, will not be adversely impacted by Britain's June 23, 2016, vote to leave the European Union (EU). The exit will, however, have a negative impact on Gibraltar-domiciled captives writing in the EU.
The name of U.S.-based Cedar Consulting LLC, the captive insurance consulting firm, remains unchanged, although the name of the Bermuda entity, Cedar Management Limited, is changing to Citadel Management Bermuda Limited.