Captive Basics
Captive Insurance Company Benchmarks: How to Know If Your Captive Is Underperforming
Benchmarking a captive insurance company requires more than reviewing the bottom line. Owners and boards should monitor reserve adequacy, retention rates, underwriting standards, governance practices, and dividend policies. These benchmarks help determine whether a captive is performing effectively or falling short of its long-term financial and strategic goals. Read More
Understanding Captive Insurance Financial Statements: What Really Matters
Understanding captive insurance financial statements helps owners and boards assess reserves, liquidity, surplus, and underwriting performance. This article explains what nonaccountants should focus on when evaluating a captive's solvency, capital strength, and long-term sustainability. Read More
What Are Insurance-Linked Securities?
Insurance-linked securities (ILS) are financial derivatives based on insured loss events, allowing insurers to transfer risk to capital market investors, offering diversification and potential better returns. Read More
Board Oversight in Captive Insurance Companies
This article explores the role of the board of directors in captive insurance governance. It outlines core responsibilities including financial and actuarial oversight, regulatory compliance, risk management, fiduciary duties, and strategic alignment, emphasizing how effective board engagement supports long-term captive stability and regulatory confidence. Read More
Letters of Credit (LOCs): The Basics
Letters of credit (LOCs) are utilized in a variety of risk management transactions and are the most frequently used type of collateral. An LOC is a legal commitment issued by a bank stating that, upon receipt of certain documents, the bank will pay against drafts meeting the terms of the LOC. Read More