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The small state with big plans for captives
Connecticut is a relative newcomer to the increasingly competitive world of captive insurance regulation, but has quickly earned a reputation as an attractive domicile. As pressure increases on offshore captives to bring business back onshore, the state hopes to capture a lot of new business. Captive International reports.
NAIC RRG task force makes progress
In late 2018 the National Risk Retention Association, frustrated by difficulties its members experienced when registering to do business in several non-domiciliary states, petitioned the National Association of Insurance Commissioners for assistance. Jon Harkavy of Risk Services examines the current state of play.
Hardening markets: choice is essential for insurance buyers
Dermot Finnerty of White Rock Group shines the spotlight on how changing market conditions are driving demand for risk retention (cell and captive) solutions.
Vermont legislature mulls changes to captive insurance regime
Vermont is in the process of updating its captive insurance regime, with a bill currently being considered by the legislature that will make a number of tweaks designed to make it easier to do business and increase transparency. David Provost and Ian Davis talked about the bill with Captive International.
IRS steps up war on captive insurance tax dodges
The Internal Revenue Service has scored some notable victories against abusive micro-captive insurance tax shelters in recent years, with settlement offers to some 200 captives last September earning it floods of cash from captives eager to end their uncertainty. For those that did not receive such a letter however, the 831(b) scandal is far from over, as Solomon Teague reports.
The ups and downs of bond and equity yields
It is very rare for the yield of the S&P 500 to eclipse the yield paid on US Treasury 10-year notes. When it does, it means either the bond market is overvalued or the equity market is undervalued—or both, says Jack Meskunas at Oppenheimer & Co.
Understanding the implications of risk
As the equity bull market continues to roll on, headlines and broad-market investors focus on returns, but risk management should be their principal concern. While it is easy to be tempted by the potential for higher returns that comes with higher risk securities, higher quality credits reduce portfolio volatility, say Brian Allen, Bryan Johanson and Jason Pettner at C.S. McKee.
The coming wave of ownership changes
When a company changes hands there are often significant effects on the underlying business. Employees can be made redundant and departments merged, and the fate of the company’s insurance and captive programmes may also be called into question, but captive managers can protect their interests, says Jeremy Huish of Business Transition Advisors.
Micro captive, micro problem
Micro captive growth has slowed down considerably as potential owners digest the implications of IRS manoeuvres against the industry. But the presence of a few bad apples should not detract from the good work done by most captives, says Jeremy Colombik of Management Services International.
Captives industry cannot expect to be found, it must engage with students
The demand for insurance talent is growing, which is especially true for the captive insurance industry. With baby- boomers retiring, generation X aging and millennials switching off at the mention of insurance - , where is the talent going to come from? Kathleen O’Neil Larkin, attorney and instructor at Missouri State University, says the gap between industry and academia must be bridged.
