Articles

Captive insurers fall into two main groups. Pure captives are 100 percent owned, directly or indirectly, by their insureds. Sponsored captives are owned and controlled by parties unrelated to the insured. Read on to learn about rental captives and protected cell captives. Read More

Under the right circumstances, a captive can provide myriad benefits and, increasingly, mid-to-large firms are looking to form or join a captive insurance company. Find out how captive insurance companies operate, the different types of captives, and five key questions to ask when considering whether to form a captive. Read More

Insurance-linked securities (ILS) are financial derivatives based on insured loss events, allowing insurers to transfer risk to capital market investors, offering diversification and potential better returns. Read More

Insurance-linked securities (ILS) let insurers transfer risk to investors, boosting reinsurance capacity and offering diverse, higher-return investments. Read More

Captive insurers utilize reinsurance to mitigate risks, stabilize earnings, and comply with regulatory requirements. They may operate as direct insurers or as reinsurers through fronting companies, which allows them to access broader services and potentially achieve tax benefits, while maintaining compliance across various jurisdictions. Read More

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

In this primer for how group captives can begin the enterprise risk management (ERM) process and develop the necessary expertise, we explore why the board should have an ERM committee as well as its responsibilities and charter. Read More

Collateral negotiations can often be contentious. While collateral is required for a variety of insurance programs, opinions of how much collateral is necessary can differ significantly. An objective discussion between the actuaries behind the loss projections on both sides of the negotiation can help find valuable middle ground. Read More