Featured News

P1060299 (2)

Should You Consider Writing Cyberrisk Coverage through Your Captive?

Cyberrisk is a hot topic at captive conferences, and a panel of experts at the Connecticut Captive Insurance Association’s annual Symposium on Captive Insurance provided a great overview of this expanding risk. Leon Pintsov, CEO of SignitSure Company, moderated the panel. He stated, “No statistical stability exists for the cyber risk,” making it difficult to underwrite.
September 19, 2014 Read More

Hot Topics

IRS Logo

Captives Land on IRS Priority Guidance Plan for 2014–2015

On August 26, 2014, the Internal Revenue Service issued its Priority Guidance Plan (PGP) for 2014–2015. The list reflects 317 projects the IRS designates as priorities for the allocation of resources during the designated period, although generally not all items are completed during the designated period.
September 25, 2014 Read More
globalmarket

Reinsurance Markets, Captives, and Generative Thinking

Over the last month Captive Wire and Captive.com have highlighted a series of headlines suggesting that the fundamentals underlying the global reinsurance market are changing. John Foehl, coeditor of Captive.com and Captive Wire, suggests generative thinking is one means of considering what these changes mean for captives.
September 25, 2014 Read More
Supreme-Court-building-permission

Underwriting Note: Another State Invalidates Caps on Some Punitive Damages

Last week a 7-0 Missouri Supreme Court decision invalidated the state cap on some punitive damages. The supreme court restored the judgment of a lower court because the plaintiff had filed a claim as a common law fraud, which existed in Missouri since the first state constitution was written.
September 17, 2014 Read More
capitolbuilding

Captive Insurer Clarification Act Would Correct Unintended Consequences of NRRA

In July 2014 Senator Patrick Leahy (D-VT) introduced Senate Bill 2796, which would clarify the definition of nonadmitted insurer under the Nonadmitted and Reinsurance Reform Act (NRRA) of 2010. The legislation is cosponsored by Senator Lindsey Graham (R-SC).
September 04, 2014 Read More

Recent News

U.S. Tax Court: Securitas a Bona Fide Captive Insurance Arrangement

Gavel on Top of Legal Books 
U.S. companies are entitled to premium and interest expense deductions if a captive is created for business purposes, an opinion of the U.S. Tax Court has determined.
October 30, 2014 Read More

Medical Malpractice Reform Study Examines Impact of Noneconomic Damage Caps

Medical Malpractice 
Captives writing medical professional liability (MPL) coverage should read the new study, “Medical Malpractice Reform: Noneconomic Damage Caps Reduced Payments 15 Percent with Varied Effects by Specialty,” which was released by Health Affairs.
October 29, 2014 Read More

Stop Loss Coverage and NAIC White Paper

Comment 
Medical stop loss coverage by self-funded insurers is becoming a hot issue, Self-Insurance Institute of America (SIIA) President Michael Ferguson has recently been quoted as saying. This topic warrants an increased focus on captives providing stop loss coverage and self-insured employers that provide medical coverage.
October 28, 2014 Read More

Cayman Islands Leading Health Care Captive Domicile

Health Care Insurance 
The Cayman Islands is the leading jurisdiction for health care captives, with health care captives representing 34 percent of all captives domiciled in the Cayman Islands, according to a report by the Cayman Islands Monetary Authority as of September 30, 2014.
October 27, 2014 Read More

Captive Insurance Basics Section Expanded

Captive.com logo 
The Captive Insurance Basics section of Captive.com has been updated and expanded with three informative articles on fundamentals of captives. Also, a new and more comprehensive captive glossary has been added.
October 24, 2014 Read More

Insurance and Financial Services Sectors Inextricably Linked, Forum Shows

Global Economy Dollars 
The insurance sector did not cause the 2007-2008 economic crisis, regulators agreed, but it was pointed out to participants in the recent ICMIF Regulatory Issues Leaders Forum that the global financial crisis did demonstrate how inextricably linked the insurance sector is to the financial services sector as a whole.
October 23, 2014 Read More

Risk Retention Group Numbers Decline

Downward Trend 
The number of risk retention groups has declined by more than 5 percent in 2014, according to a recent report on the Risk Retention Reporter website.
October 22, 2014 Read More

New Chief Executive of Guernsey Finance Appointed

Guernsey Flag 
The Board of Guernsey Finance has appointed Dominic Wheatley chief executive of Guernsey Finance effective December 1, 2014.
October 22, 2014 Read More

CICA Webinar Looks at Base Erosion and Profit Shifting (BEPS)

logooecd_en 
The Organization for Economic Cooperation and Development (OECD) plan for tax base erosion and profit shifting is already affecting corporations, even though implementing the recommendations will be challenging, according to the speakers at last week’s Captive Insurance Companies Association (CICA) seminar on transfer pricing.
October 21, 2014 Read More