IRS Developments and Insurance Fundamentals for Captive Insurance Companies

As Internal Revenue Service (IRS) scrutiny and court decisions continue to shape the captive insurance landscape, understanding what regulators expect has become increasingly important. In this episode of The Edge of Risk Podcast by IRMI, Joel Appelbaum speaks with George Belokas, president of GPW and Associates, chair of the Self-Insurance Institute of America Captive Committee, and president of the Arizona Captive Insurance Association, about the insurance fundamentals that support well-run captive insurance companies.

Mr. Belokas explains why actuarially sound pricing, appropriate reserving, risk transfer, risk distribution, and strong governance remain central to demonstrating that a captive is operating as a bona fide insurance company. The discussion also examines lessons from recent IRS regulations and court decisions, documentation best practices, and how organizations are using captives to address evolving risks such as cyber liability, employee health care, and supply chain disruption while maintaining a long-term strategic approach.

Hear the full conversation on Captive.com to learn how sound actuarial practices, thoughtful governance, and regular program reviews can help captive owners strengthen underwriting decisions, address emerging risks, and operate their captives with confidence in an evolving regulatory environment.