PROGRAM CAPTIVES: EYES WIDE OPEN Opportunities beckon, but don’t rush in By Joseph S. Harrington, CPCU Agents and brokers have been showing intense interest over the past decade in creating captive insurers for supporting program business. Among other things, by sharing premium as a de facto reinsurer of primary carriers, captives can provide their owners with more revenue for investment, and hence greater overall returns, in a low interest rate
Alternative Risk Transfer
RISK RETENTION FOR THE WIN This proven solution can be a salvation for industries and organizations saddled with hard-to-place risks By A. Ren Agarwal and Brian Johnson Is the concept of a risk retention group (RRG) scarier than the concept of blockchain or bitcoin? It shouldn’t be, because it’s a proven option for many insureds, especially nonprofits. Done right, risk retention can be a salvation for those industries and organizations
PERFORMANCE BASED INSURANCE: SMART SOLUTION FOR MID-SIZED COMPANIES A seasoned expert explains how PBI works and why it’s a great choice for middle market businesses By Elisabeth Boone, CPCU Performance Based Insurance? What’s that? How does it work? For whom is it designed? How do I get started with it? These are just a few of the questions agents and brokers ask about what to many is an unfamiliar concept.
Risk Managers’ Forum By Michael T. Scott CAPTIVE INSURANCE: TERRORISM VS. PANDEMIC COVERAGE With a federal backstop in place, pandemic risks can become insurable Captive insurance is a type of alternative risk transfer in which a business forms its own insurance company to insure its risks. Since the 9/11 terrorist attacks, there has been an increase in the formation of captive insurance companies that cover their owners’ terrorism risk. For
CREATIVITY: THE MOTHER OF INVENTION Captives can be incubators for new approaches to coverages and risk management By Michael J. Moody, MBA, ARM Without a doubt, 2020 will go down in the record books as one of the world’s most challenging years. While the majority of risks faced in a normal year can vary from year to year, 2020 experienced just about all of the existing risks as well as
