Business Definition for: Captive Insurance Company
an insurance company that has been established by a parent company to underwrite all its insurance risks and those of its subsidiaries. The benefit is that the premiums paid do not leave the organization. Many captive insurance companies are established offshore for tax purposes.
A captive is an insurance company that's owned by a corporation whose primary business is not insurance. The captive provides coverage only for its parent organization. Insuring employee benefits through a captive has been problematic because the Employee Retirement Income Security Act ERISA expressly forbids transactions between an employee benefit...
Businesses are sick and tired of the hard insurance market, particularly for property and casualty coverage, and they are looking for a way out. For many proactive organizations, the exit signs point toward forming a captive insurance company as part of their long-term risk management strategy. In its most common...
If you don't have a captive insurance program in place, you may soon be in the minority: insurance industry trends indicate that most businesses will implement a captive insurance program by 2010. If you don't have a captive insurance program in place, you may...
A captive is a bona fide insurance or reinsurance company. Its business is primarily supplied by and controlled by its owners, which are also normally the principal insureds. These owners/insureds participate in controlling the underwriting, claims and investment decisions of the insurance company. This article on captives defines them and...
A continued soft insurance cycle has not stopped insurance buyers from forming captive insurance companies, according to captive managers from the insurance brokerage community who debated when the best time to form a captive is during recent intervi A continued soft insurance cycle has not stopped...
When facing high premiums or a lack of commercial coverage, many organizations turn to captive insurance as a solution. While captive insurers have solved a number of coverage issues, the most successful are those that have implemented some basic best practices. Those that did not tended to fade away or...
The owner of a captive insurance company lacks the experience of buying reinsurance, especially when they are dealing with the few sophisticated reinsurers that exist in today?s reinsurance market. In the reinsurance buying negotiation process, the captive owner is at a complete disadvantage when dealing with experienced reinsurance company executives....
The paper informs about the focus of the captive insurance company which should be for insurance coverageÆs which is not available in the traditional insurance market place. This can be expanded to include costs for insurance in the traditional market whereby itÆs not economically feasible for the corporation owner to...
Purchasing insurance continues to be difficult and expensive for construction firms. While the risks contractors face every day in their businesses may not have changed much in the past three years, the insurance industry certainly has. Many carriers have pulled out of the construction trades altogether, and there continues to...
Whenever the traditional insurance market abandons a class of coverage, the captive offshore insurance approach should be explored to provide a new solution. The paper highlights that offshore insurance solutions have become a recognized option in the arsenal of risk management. Like any sophisticated insurance solution, careful analysis must be...
HUD announced its first settlements concerning "Captive title reinsurance," an expression that sounds like something out of a romance novel in a real estate office. But rather than having anything to do with romance, captive title reinsurance is all about another subject: Money - and who gets it. Reinsurance is...
***** Correction: A chart in the March 12 issue, Largest Captive Managers Worldwide, contained an incorrect name for Aon Corp.'s captive unit. The correct name is Aon Global Insurance Managers. ***** 1. Aon Captive Services Group, Dublin, Ire ...
Byline: DAVE LENCKUS Verizon Communications Inc. uses captive insurance to cover more than anticipated losses or risks for which commercial insurance has disappeared or become exorbitantly expensive. One custom captive insurance program helps co Byline: DAVE LENCKUS Verizon...
HONOLULU -- Hawaii Governor Linda Lingle has announced the recent licensing of the newest Hawaii captive insurance company that will be used to insure the national and international risks of its Japan-based parent company.
OLDWICK, N.J. -- Henry Witmer and Marc Liebowitz of A.M. Best Co. gave a presentation, via teleconference, to the Board of Directors of PURMA Public Utilities Risk Management Association, and the Board of Directors of PURMA's association captive, Public Utility Mutual Insurance Company PUMIC. The presentation provided insight into the...
U.S. captive insurance domiciles, from large to small, are noticing a burgeoning interest in the formation of captive insurance entities for medical liability coverage, according to state insurance regulators. With insurers like The St. Paul Compan U.S. captive insurance domiciles, from large to small,...
Captives are created to serve their owner-policyholders. Traditional insurance solvency and ratio standards may not apply to them. Tillinghast Recognized and Accepted Captive Standards TRACS was developed to help captives prudently manage and benchmark their operation. This paper concentrates on the captive as a special-purpose vehicle for insuring and retaining...
Value measurement entails comparisons. Comparisons to standards, such as financial ratios, are the most common in financial services. Although net income and return on capital are the standards most often used by insurers, they are not the best indicators of value for captives because they are only partly relevant to...
OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating FSR of B++ Good and an issuer credit rating ICR of "bbb" to PacWest Captive Insurance Company, Inc. PacWest Arizona. The outlook for both ratings is stable.
Byline: MICHAEL BRADFORD HAMILTON, Bermuda-The largest captive domicile in the world is not-when it comes to new formations-the busiest. Captive insurance company formations in Bermuda are little changed from a year ago, and there is not much to Byline: MICHAEL BRADFORD...
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