Captive Basics

Boards of directors are central to captive insurance governance, balancing compliance, financial oversight, and risk strategy. Requirements differ across domiciles: Vermont mandates a resident director, Cayman applies fit-and-proper standards, Bermuda requires a principal representative, and Delaware offers flexibility. Strong boards safeguard solvency and align captives with long-term objectives. Read More

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 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

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