Types of Coverages

Captives can play an important role in addressing emerging risks such as cyber risks or with volatility such as that seen with property risks, according to Steven Bauman, head of AXA XL's global programs and captive practice in North America.

Aon has launched a new underwriting platform offering what the company says is the largest known delegated capacity for intellectual property (IP) liability risks. In 2018, Aon announced the development of an insurance facility providing $100 million in capacity for IP infringement liability exposures.

Though intangible assets are becoming an ever-growing part of many companies' value, there are significant disconnects between the way many organizations approach coverage of their tangible and intangible assets. Addressing those growing exposures could be a function of parametric coverage designs, new technology, and captive insurance structures.

The biggest advantage to writing third-party business through a captive insurance company is that it may provide a tax advantage, according to David Lang, principal, consulting actuary with Milliman. An organization may be able to defer taxes on its unpaid claim liabilities, much like an insurance company.

Faced with a hardening insurance market, owners of multifamily housing properties are now working through renewals that bring sharp increases in rates, larger deductibles, and a decrease in capacity. When addressing all these factors, owners are starting to think more about self-insuring these risks.

An upcoming webinar from Management Services International (MSI) will focus on how captive insurance companies can fill gaps in commercial insurance coverage in the face of claims resulting from the COVID-19 pandemic. The webinar, titled "COVID-19 Claims Saving Small Businesses with MSI Captives," is scheduled for noon (EST) on Wednesday, April 8.

Since hemp production became legal, it has been fast-tracked to become a unique commodity, but insurance coverage issues remain. A hybrid solution involving specialty insurance and captive insurance might be the answer.

A captive insurance company could help small-to-midsized business owners mitigate cyber risk in a cost-effective and practical way.

John Talley, captive program manager for the Missouri Department of Commerce and Insurance, breaks down captives and their applicability to agricultural insurance.

Staying abreast of trends in construction risk and insurance is no easy task. "Construction Risk Thought Leadership," a free IRMI publication sponsored by Marsh, includes 7 quick-and-easy-to-read articles based on interviews with 15 construction risk and insurance experts.

Captive insurance planning has the potential to help mitigate reputational risk as the burgeoning #MeToo movement continues to spread and more people are implicated. It is a tailored approach that could mean the difference between financial ruin and resilience.

No organization can anticipate every possible scenario that may affect its business. This includes supply chain risk. Find out how a captive insurance company can address supply chain risk factors and circumvent business interruptions.

Industries such as self-storage facilities, dry cleaner chains, and real estate face environmental risks that are not obvious and are often overlooked. Middle market businesses subject to uncommon environmental risks that may lead to significant losses could benefit greatly from the cost-effective risk coverages afforded through a captive insurance company.

In this synopsis of a recent Milliman white paper exploring the deterioration in general liability claims costs and the potential impact on captive insurers, we also offer some basic suggestions to captives on how to address this problem.

US Department of Labor (DOL) suspension of a regulatory procedure employers have used for years to get expedited DOL review of their applications to fund employee benefits through their captive insurance companies is continuing, while regulators are circulating new captive benefit funding requirements.

Over the past several years, a number of independent reports have been published detailing the biggest, most egregious risks facing businesses. Whether we're talking about a "top 10" list or a "top 5," the real constant across the board was business interruption and its devastating impact. Find out how captive insurance can help.

Workers compensation large deductible plans provide up-front premium savings for organizations. Some organizations choose to maximize the financial benefit by utilizing a captive insurance company to insure the large deductible.

Breaking down claims data silos to bring various data sets together in healthcare systems requires a systematic approach, according to a panel of experts who recently spoke at the World Captive Forum.

While only a sliver of captive insurance companies fund their parents' employee benefit risks, the number is growing as more companies understand the advantages of that approach, experts say.

Mark Sims of Captive Alternatives advises that health insurance is one of an employer's biggest expenses. Many businesses are looking to use their captive insurer to help control healthcare costs. With captive insurance, the employer can prefund, into their captive, premium to cover their claims responsibility within the "specific deductible."