Captive Basics
How Much Capital Does a Captive Insurance Company Need?
Capitalization is a key consideration in forming and operating a captive insurance company. Regulatory minimums are only the starting point. Risk profile, expected losses, liquidity, reinsurance, and business strategy all influence capital needs. Regular financial and actuarial reviews help ensure capitalization remains appropriate as the captive and its exposures evolve. Learn More
Understanding Loss Development in Captive Insurance Companies
This article explains how loss development affects financial outcomes in captive insurance companies. It outlines key concepts such as incurred but not reported, reserving accuracy, and loss development triangles, while highlighting common pitfalls. The piece emphasizes the importance of disciplined claims management and actuarial analysis in maintaining financial stability and supporting effective risk management strategies. Learn More
Key Considerations for Effective Claims Management in Captive Insurance
Learn key considerations for effective claims management in captive insurance, from appointing a claims manager to balancing speed and accuracy in handling claims. Read More
Can a Captive Insurance Company Insure Employee Benefits?
Increasingly, organizations today utilize some form of captive insurance to fund the costs of employee benefits such as medical and life insurance, accidental death and dismemberment, long-term disability, and retirement. Learn about the advantages and disadvantages of funding benefits through a captive insurance company. Read More
Captive Insurance: Why or Why Not?
There are numerous factors to contemplate when deciding whether or not to form a captive insurance company. Read about some of the advantages and disadvantages of captive ownership to consider when deciding whether to form a captive insurance company or not. Read More
Understanding Reinsurance in Captive Insurance
Reinsurance is essential for captive insurance, addressing coverage gaps and enhancing risk management. Understand treaty and facultative structures, licensing differences, and their role in financial stability. Read More
Key Concepts for Captive Insurance Reinsurance Contracts
We take a look at some key concepts and reinsurance contract clauses that can help minimize the likelihood of a disagreement with your reinsurers. And, should these disagreements arise, the concepts and contract wording can provide additional protection to a captive insurance company. Read More