Captive Basics

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

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

Under the right circumstances, a captive can provide myriad benefits and, increasingly, mid-to-large firms are looking to form or join a captive insurance company. Find out how captive insurance companies operate, the different types of captives, and five key questions to ask when considering whether to form a captive. Read More

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

Cell captives are one of the many options available to companies interested in exploring captive insurance solutions. Cell captives offer organizations a way to realize all the benefits of a captive solution with significantly lower start-up and operating costs. They also take less time to implement than traditional single-parent captives. Read More