Captive Basics

Risk Retention Groups: A Basic Overview

April 12, 2017

A risk retention group (RRG) is a captive insurance company formed pursuant to the federal Liability Risk Retention Act. This article discusses some of the basics of RRGs, including differences between RRGs and other types of captives. Read More


The 3 Categories of Risk Retention Groups

March 28, 2017

A panel discussion on corporate governance of Risk Retention Group (RRG) at the 2017 Captive Insurance Companies Association (CICA) Conference provided a useful way to categorize RRGs. RRGs can be divided into one of three categories based on whether there is a sponsor and, if so, the type of sponsor. Read More


What Is a Reciprocal Insurance Company and How Is It Taxed?

March 1, 2017

A reciprocal insurance company is an arrangement through which mutual promises of the participants are exchanged with respect to their insurance risks. While not a separately incorporated company, it is characterized as an insurance company for federal tax purposes. Read More


Why Do Captives Get Credit Ratings?

February 27, 2017

While the need for ratings by traditional insurers is obvious, it is not so apparent for captives. This article explains why some captive insurance companies go through the credit rating process. Read More


Basics of Loss Development Triangles

February 20, 2017

As a member of the board of a captive insurance company, you have a responsibility to understand the key concepts that underpin how the captive performs. This second in a series of articles continues this educational process, focusing on the concept of loss development. Read More