Current Features

• July 27, 2010: "An Open Letter to Sen. Carl Levin" from Anthony Travers, O.B.E., Chairman, Cayman Finance.

  "...Your Support for the group callling itself 'Business and Investors Against Tax Haven Abuse' necessitates this response. Your endorsement of that organization's recent report well might lend credibility to statements that are in error and recommendations that are misguided..." [Download full letter]

  Mancini's Musings: This is a concise, brilliant explanation of free-market principles surrounding taxation of multi-national corporations that should be required reading for every American -- especially the elites in government, media, and education. This was reported in Politico, but I have not seen it reported in any other media outlet. Your comments would be most welcome. Should you choose to comment, please be sure to let me know if you would like your opinion published. E-mail Chris Mancini.

  
  
• Posted June 3, 2010: FEDERAL LIABILITY RISK RETENTION ACT OF 1986, 15 USC 3901-3906 (1981, as amended 1986), downloadable in pdf.
  
  
• May 27, 2010: NJCIA works to keep New Jersey a “risk retention group friendly” state.

  Article begins: "On Thursday May 27th, a bill will be discussed by the New Jersey Senate Commerce Committee that can close down the New Jersey operations of several risk retention groups (RRGs). Senate Bill 1823 (Makes sundry changes to taxicab laws) was amended to require that a taxicab owner have an insurance policy of an admitted insurance company which is a member of the New Jersey Property-Liability Insurance Guaranty Association. That single sentence could make RRGs currently insuring taxis in New Jersey, no longer permissible to do so since it is generally accepted that RRGs are prevented from becoming Guaranty Association members by the federal RRG legislation. One risk retention group will likely close its New Jersey office and reevaluate the jobs of six employees. However, the greatest pain may come to the hundreds of taxi cab owners that may need to shop for new insurance and pay higher premiums..." [To full article on the NJCIA website]

• May 4, 2010: Is it "Time to Take it on Trust" in collateralizing your captive? How does a Reg 114 Trust compare with other collateralization options such as cash or Letters of Credit (LOCs) in an economy where tight liquidity has become a given? How do Reg 115 Trusts work? How do they compare with other options by way of formative and ongoing costs? Are they all the same? Who can benefit from them?

  Doug Lavalle and Tom Mackay, both senior VP's for Wilmington Trust, have supplied practical answers to these questions in this excellent article, published in the April edition of Captive Review. Captive.com wishes to thank our friends at Captive Review for their kind permission to share this article with our readers. Download "Time to Take it on Trust" now.

• March 17, 2010: Key Themes from the 2009 Cayman Captive forum -- Captive Insurance in the Cayman Islands: Stability in a world of uncertainty. In continued support of the successful Cayman Captive Forum, this successful event's main sponsor, -- KPMG -- has kindly provided a highlights brochure covering the key themes of the 2009 conference. The publication provides an overview of key topics for all to read and for those who attended, a useful reminder of the discussions and educational topics that took place. Should anyone require a hardcopy of the brochure, please e-mail Dara Keogh at KPMG darakeogh@kpmg.ky. Source: Insurance Managers Association of Cayman (IMAC)
  
  
• February 23, 2010: Towers Watson has just posted a new article and PodCast on its website that you might want to download. Coming Together: Capital and Risk Management: "Successful capital management requires an integrated picture of a firm’s capital needs and funding possibilities, and an effective process for managing capital allocation to individual business units.

  "This article, part of our ongoing series on embedding ERM in insurance, analyzes the capital management function’s roles and responsibilities..."

  • To summary page (links to the complete article and PodCast are found in the right margin, but for your convenience, we will supply the link to the pdf here)
  • Download full article in pdf
    
    
• January 7, 2010: Chris Kramer, hailing from Atlas Insurance Management, recently published an interesting article entitled, "Captives Fuel Growth and Income for Agency Owners," in the Insurance Journal. Captive.com wishes to thank Insurance Journal for their kind permission to link to Chris's article. Excerpt follows:

  "In times like these, where the insurance industry is now in its fifth year of a soft market, the use of an agency captive insurance company can spark both revenue and profits to improve an agency’s overall financial performance. The agency captive may also provide the owners a better return than a profit sharing agreement..." [To full article]

FEDERAL LIABILITY RISK RETENTION ACT OF 1986, 15 USC 3901-3906 (1981, as amended 1986), downloadable in pdf.

Ask the Expert Q&A: A compilation of some of the most compelling "general interest" questions that have recently come before our Ask the Expert resources. Answers are supplied in pop-up windows.

July 27, 2009: What's Next for Bill White? Captive.com recently learned that William P. White, Administrator of Delaware's Captive Program, will be leaving this role in Delaware when his contract expires on July 31, 2009. Captive.com's Chris Mancini asked Bill a few questions, which we are pleased to share in this brief article. Bill's replies have been left verbatim and unedited, to give him the opportunity to share his perspective on the transition in his own words. We will do the same when the Insurance Department sends its press release to us early this week. At the very end of the article, Chris shares a few thoughts of her own in a brief "Mancini's Musings on the evolution of Delaware as a captive domicile" editor's note.

From the 2008 World Captive Forum, November 17-19: Western US Captive Domicile Round-up -- 2008 and Beyond. This article was in the packet of materials that attendees received at this premier event.

From the 2008 VCIA Conference:

• The Captive Service Provider Wheel of Fortune by John Salisbury. In this article, John summarizes a well-received conference session on a timely and important topic.
• Mancini's Musings #7 on VCIA Conference 2008 -- Solving the Risk Management Puzzle Conference Summary and a Glimpse of VCIA 2009 by Chris Mancini

More Mancini's Musings:

• Mancini’s Musings #6: The Story of the World Trade Center Captive. Unlike most of my light-hearted articles, this one is not a bit funny. The article summarizes a March 13, 2006 CICA Conference session by the same title, expertly delivered by Christine LaSala. The article is laced with a few of my own editorial opinions on this important story, which continues to unfold, along with profound implications for our industry. Links to testimony at recent Senate hearings, as well as new proposed legislation, are provided in the article.

On the lighter side...each article more ridiculous than the one preceding it. I'm sorry...I just can't help myself.

• Mancini's Musings on the 5th Annual Reactions Magazine Awards Dinner, 29 August 2006, Weston Times Square.
• Mancini's Musings on the 15th World Captive Forum
• Mancini's Musings on the 2002 VCIA Conference.
• Mancini's Musings on the 2001 VCIA Conference
• Mancini's Musings...The SCCIA Spring Forum

Book Reviews by captive.com's President, John Salisbury:

• Kate Westover's Captives and the Management of Risk
• John Kotter's Leading Change
• John Kotter's Force For Change: How Leadership Differs From Management

Hit by labor woes and infrequent flying, Delta uses its captive insurance company to smooth long-term earnings risks.

Our thanks to our friends at CFO.com for their timely article, Delta's Strategy for Reducing Turbulence.

Hawaii Captive Insurance Council (HCIC)

• Why Own When You Can Rent? A great presentation delivered at the 2005 CICA Conference.
• Financial Services Deregulation -- A Driver of New Captive Opportunities, a PowerPoint Presentation by David L. Fried, Executive Vice President, HSBC Bank USA and President, HSBC Insurance Agency (USA) Inc.
• Captive Review Bermuda 2000 Report, HSBC Insurance Services (Bermuda) Limited, Interview with Roy Fellowes

May 4, 2010: Is it "Time to Take it on Trust" in collateralizing your captive? How does a Reg 114 Trust compare with other collateralization options such as cash or Letters of Credit (LOCs) in an economy where tight liquidity has become a given? How do Reg 115 Trusts work? How do they compare with other options by way of formative and ongoing costs? Are they all the same? Who can benefit from them?

Doug Lavalle and Tom Mackay, both senior VP's for Wilmington Trust, have supplied practical answers to these questions in this excellent article, published in the April edition of Captive Review. Captive.com wishes to thank our friends at Captive Review for their kind permission to share this article with our readers. Download "Time to Take it on Trust" now.

April 15, 2008: "Captive Insurance Companies - What to Consider When Establishing and Operating Captives" by Patrick Theriault [Editor's Note: This is an outstanding "Captives 101" white paper that we know you will appreciate, updated to reflect recent changes in the industry.]

August 15, 2006: "Medical Malpractice Insurance Crisis - Alternative Risk Transfer Solutions" by John O'Brien, formerly of Wilmington Trust. [Editor's Note: A primer on ART solutions that anybody in the medical field needs to read.]

Captives and Letters of Credit -- A Happy or Necessary Union? The majority of captive programs require a letter of credit at some point or another. This fine article by Patrick Theriault of Wilmington Trust Captive Services will give you the background you will need to be conversant on this important subject.