Corporate governance is the cornerstone of any successful captive insurance arrangement. As captives are unique entities designed to manage risk for their parent organizations, they require a governance framework that ensures compliance, fosters accountability, and aligns with strategic goals. This article delves into the critical elements of corporate governance in captive insurance, the importance of selecting a reputable domicile, and the professionals essential to the process.
Tail liability refers to outstanding claims obligations that persist after a given policy period. This is also known as the extended reporting period(ERP) and extends the timeframe to report claims for incidents that occurred during a previous policy period.
Admitted and non-admitted insurance carriers serve distinct roles in risk management, each with unique regulatory frameworks, protections, and applications. Understanding these differences is critical for businesses evaluating insurance strategies.
As we move through the first quarter of 2025, the captive insurance and reinsurance landscape continues to evolve at a rapid pace. This month has seen a flurry of activity that underscores the growing importance of alternative risk transfer mechanisms in global business strategies.
Schedule F is a critical component of U.S. insurance regulation that governs how insurers report reinsurance transactions and manage associated financial risks. In captive insurance arrangements, Schedule F compliance directly impacts collateral requirements to protect against reinsurer insolvency and maintain statutory financial stability.
A large residential property client worked with C.I. to procure a $2.5m Property Policy along with a $400k/$5m General Liability Policy. With over $1bn in total insured values and 10k+ units this client retained 85% of the premium back into their captive on AM Best Rated A+XV Admitted paper.
A large specialty construction company, partnered with C.I. to secure $5 million in excess liability coverage above a $15 million primary layer. The client retains over $2.5 million in gross written premium (GWP) within their captive while satisfying lender requirements. With a 0% historical loss ratio in this excess layer, the client now retains underwriting profits that were previously absorbed by commercial insurers.
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