Reforms and Risk Management: Strengthening 831(b) Micro-Captive Practices

In this episode of The Edge of Risk Podcast by IRMI, Joel Appelbaum speaks with Dustin Carlson, president of the 831(b) Institute, about how the micro-captive sector can reinforce its credibility through practical reforms. Drawing on Mr. Carlson's recent Captive Insurance Company Reports series, the discussion examines three areas that have attracted regulatory attention: estate-planning ownership structures, captive investments in life insurance and annuities, and related-party lending practices.

Mr. Carlson outlines policy proposals intended to address abusive structures while preserving legitimate risk financing uses of Section 831(b) captives. The conversation also highlights governance practices—such as proper loan documentation, claims processes, and adherence to insurance principles—that help ensure captives remain focused on risk management rather than investment or wealth transfer strategies.

Hear the full conversation on Captive.com for practical insight into proposed reforms and the future of Section 831(b) micro-captives.