Reinsurance and Fronting

  Uncertainty for Captives-SF

What Captive Insurers Need To Know about ILS, Alternative Capital, and Reinsurance

As Hurricane Irma has left its mark on Florida, and Texas continues the cleanup from Hurricane Harvey, what do these catastrophes imply for the insurance-linked securities (ILS), alternative capital, and reinsurance markets?
September 11, 2017 Read More
  Martin Eveleigh

How Single-Parent Captives Can Benefit from Captive Risk Pooling

Many single-parent captives insure only the risks of just one or a few insureds and will be unable to achieve risk sharing. One solution involves joining a risk pool. The benefits of captive risk pooling are explained in this video by Martin Eveleigh of Atlas Insurance Management.
August 14, 2017 Read More
  Negotiation-SF

Communication Is Key to Successful Collateral Negotiations

Collateral negotiations can often be contentious. While collateral is required for a variety of insurance programs, opinions of how much collateral is necessary can differ significantly. An objective discussion between the actuaries behind the loss projections on both sides of the negotiation can help find valuable middle ground.
July 12, 2017 Read More
  Hurricane-SF

What Are Insurance-Linked Securities?

Insurance-linked securities (ILS) are derivative or securities instruments linked to insurance risks. ILS value is influenced by an insured loss event underlying the security. This securitization model was born of efforts to develop an additional source of insurance and reinsurance capacity by transferring insurable risks to the capital markets. As the ILS market has developed, it has provided an alternative source of risk capital, most often for property catastrophe risks such as windstorm and earthquake.
June 12, 2017 Read More
  Think Outside the Box-SF

Reinsurance—3 Ways To Think Outside the Box

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.
March 27, 2017 Read More
  Brick Wall Ahead 600x300

The Future of Lloyd’s: Facing Up to Fundamental Challenges

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.
January 19, 2017 Read More
  Rental Application

Captive Insurance Basics: A Guide to Rental Captive Insurers

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.
December 13, 2016 Read More
  New Jersey Flag

Captive Insurer Licensed To Reinsure Underground Storage Tank Owners in NJ

Founders Indemnity Group, Inc., was licensed by the New Jersey Department of Banking and Insurance on November 2, 2016.
November 28, 2016 Read More
  Statistics

Reinsurer Underwriting Results Mixed for Third Quarter 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.
November 22, 2016 Read More
  Downward Trend

Golden Insurance Company RRG A.M. Best Rating Is Negative

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.
October 25, 2016 Read More
  Connecticut Flag

2016 CCIA Annual Symposium on Managing Risk in the New Economy

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.
October 20, 2016 Read More
  US Capitol Steps

New Reinsurance Tax Bill Proposals Could Affect Captive Insurers

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."
October 11, 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
  Forum Speaker

17th Annual SCCIA Conference Begins Next Week

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.
September 08, 2016 Read More
  Statistics

Property-Casualty Reinsurer Survey Reports Increase in Net Premiums

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.
August 24, 2016 Read More
  Arizona

Arizona's Captive Midyear 2016 Count Increases

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.
August 23, 2016 Read More
  Chicago

Autonomous RRGs Will Be Focus of NRRA Conference in Chicago

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.
August 19, 2016 Read More
  Black Swan

Inherent Risks Roil Reinsurance Markets

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.
August 12, 2016 Read More
  Company Rating

Reinsurance Marketplace Trends at VCIA 2016 Conference

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.
August 02, 2016 Read More
  Vermont State Capitol

Captive Insurance Domicile Milestone—Happy 35th Anniversary, Vermont

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.
July 26, 2016 Read More