Captive Basics

Captive insurance companies pursue credit ratings to strengthen corporate governance, improve transparency, and reduce costs. A strong rating reassures reinsurers and fronting companies, potentially lowering fees and premiums. Additionally, captives use the rating process to benchmark performance and gain insights into financial health and best practices. Read More

Collateral is essential to the structure of captive insurance companies, ensuring claims can be paid and regulatory requirements are met. From letters of credit to trust accounts and funds withheld, captives use a variety of tools to secure obligations and maintain credibility with fronting insurers, reinsurers, and regulators. Read More

An actuarial analysis estimates a company's unpaid insurance losses, offering insight into funds needed for claims. This analysis is crucial for companies retaining significant insurance risks and can help determine the benefits of forming a captive insurance company to manage these risks more effectively. Read More

Captive insurance companies can be used to insure just about any risk to which a parent company is exposed. Read More

Effective claims management is essential to a captive insurance company's financial health. This article explores key strategies, from vendor selection and technology oversight to reserve planning and incurred-but-not-reported awareness. Whether outsourcing or managing in-house, owners must align claims practices with long-term objectives and regulatory expectations for sustained success. Read More