Captive Basics

This article explains how loss development affects financial outcomes in captive insurance companies. It outlines key concepts such as incurred but not reported, reserving accuracy, and loss development triangles, while highlighting common pitfalls. The piece emphasizes the importance of disciplined claims management and actuarial analysis in maintaining financial stability and supporting effective risk management strategies. Read More

Learn key considerations for effective claims management in captive insurance, from appointing a claims manager to balancing speed and accuracy in handling claims. Read More

Boards of directors are central to captive insurance governance, balancing compliance, financial oversight, and risk strategy. Requirements differ across domiciles: Vermont mandates a resident director, Cayman applies fit-and-proper standards, Bermuda requires a principal representative, and Delaware offers flexibility. Strong boards safeguard solvency and align captives with long-term objectives. Read More

Benchmarking a captive insurance company requires more than reviewing the bottom line. Owners and boards should monitor reserve adequacy, retention rates, underwriting standards, governance practices, and dividend policies. These benchmarks help determine whether a captive is performing effectively or falling short of its long-term financial and strategic goals. Read More

Understanding captive insurance financial statements helps owners and boards assess reserves, liquidity, surplus, and underwriting performance. This article explains what nonaccountants should focus on when evaluating a captive's solvency, capital strength, and long-term sustainability. Read More