Insights

8/5/2025

Captives Drive Innovation and Outperformance in U.S. Insurance

Discover why U.S. captive insurance companies continue to outperform commercial insurers, with superior underwriting, risk control, and profitability. Explore expert insights and industry trends driving the ongoing growth and strategic advantages of captives in today’s evolving insurance market.

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8/5/2025

The Importance of Earned and Unearned Premiums: Key Concepts

Ever hear the term earned and unearned premium? While this is a fairly standard concept in insurance, this article explores the importance of these concepts in detail. Insurance premium accounting is fundamental to how insurers track their obligations and financial health. Two key concepts underpinning this accounting are earned premium and unearned premium. Both play vital roles in revenue recognition, cash flow, and regulatory compliance for insurers—and are essential for policyholders and captive service providers to understand.

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8/5/2025

From Harbor Surge to Firestorm: The U.S. Struggles With Flood and Wildfire Risk Amid California’s Record-Breaking Disaster Year

The July 30, 2025 tsunami, triggered by the massive Kamchatka earthquake, reached the U.S. Pacific coast but resulted in largely modest physical effects. Of all the areas affected, Crescent City, California experienced the most significant damage, with about $1 million needed for harbor repairs after a surge damaged a floating dock and related infrastructure. Elsewhere along the coast, harbors and marinas in Monterey, Santa Cruz, and other cities prepared for impacts, but ultimately saw only minor water surges, utility precautions, and temporary disruptions before advisories were lifted. The National Tsunami Warning Center managed a swift response, while local agencies enacted utility shutdowns and dock restrictions to limit property loss and protect lives. Most U.S. damage was thus highly localized and contained, with no major incidents or casualties.

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7/29/2025

Risk Distribution in Captive Insurance: Aligning US Tax Court Methodology with Underwriting Practices

The evaluation of adequate risk distribution in captive insurance companies for US federal income tax purposes has created a significant divergence between Tax Court judicial standards and commercial insurance underwriting methodologies. While both frameworks ostensibly aim to ensure genuine insurance characteristics, their approaches to measuring and validating risk distribution differ substantially in both philosophy and practical application.

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7/22/2025

Something Just Like This: EPLI Risks in the Afterglow of Workplace Romance

Caught in a workplace scandal at a Coldplay concert, Astronomer’s CEO and HR leader highlight major Employment Practices Liability Insurance (EPLI) risks for businesses. Discover how scandals like these can expose organizations to costly claims—and how captive insurance strategies can help companies manage, finance, and control EPLI risks more effectively.

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7/22/2025

Swift V. Commissioner: A Comprehensive Analysis of Tax Court Evolution and Industry Implications

The Fifth Circuit's affirmation of the Tax Court's decision in Swift v. Commissioner represents a watershed moment in captive insurance jurisprudence, establishing new precedents that extend far beyond the micro-captive arrangements at issue. This decision not only continues the IRS's perfect litigation record against questionable captive structures but also introduces significant analytical shifts that will reshape how courts evaluate all captive insurance arrangements for federal income tax purposes.

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7/22/2025

Domestic vs. Offshore Captive Insurance Domiciles: Understanding the Landscape

Choosing the right domicile—essentially where a captive insurance company is licensed and regulated—is one of the most strategic decisions a business can make when forming a captive. It influences everything from regulatory compliance and tax treatment to access to local expertise and long-term cost efficiency.

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