The IRS is on a winning streak against 831(b) captive insurance companies, and as such could afford to take a tough line in its settlement offer to some micro captives, says Matthew Queen of Venture Capital Management.
TCOR is the industry standard model for tracking insurable costs, used by institutions across all industries to benchmark themselves against peers and historical trends, and by captives to determine reasonable insurability. It is a frustratingly limited measure of risk, so Randall Davis at Delphi Risk Management developed new models to do the job better, as he told Captive International.
Captive insurance companies have played an integral role in bringing ERM to the middle market, and enterprise risk captives have been hotbeds of innovation, finding new ways to price unusual risks, says Andrew Rennick of Womble Bond Dickinson.
There has been an aggressive shift in the approach of certain US states to the collection of self-procurement taxes. What implications does this have for the industry? And will there be more redomestications to the ‘home’ state? US Captive investigates.
As commercial insurance rates start to harden, more sophisticated owners of captives are starting to leverage them to avoid rate hikes by using analytics or looking to access the reinsurance markets directly. US Captive reports.
The Syzygy opinion marks the third significant microcaptive loss in the US Tax Court, and prominent captive managers have come under fire for allegedly designing and selling sham 831(b) captives. What does this mean for their future? US Captive investigates.
Careful planning can help reduce the risk of exposure to premium taxes outside a captive’s domicile, says Joseph Holahan of Morris, Manning and Martin.
Fewer captives are being formed but they are more sophisticated and being created for the right reasons. Add to this a greater emphasis on risk management and talent and the industry looks in good health for the long term, says Daniel Towle of the Captive Insurance Companies Association.
The FSAB’s ASU 2016-01 is now in effect. This will have a significant impact on the way any company, including most captive insurance companies, which maintains its accounting records in accordance with GAAP, will be required to comply, says Leon Rives of Rives and Associates.
Syzygy Insurance v Commissioner may paint a negative picture of the industry, but also provides some helpful guidance on how to structure small captives, says David Kirkup, chief operating officer at Captive Alternatives.