TCIA 13th Annual Conference

If you're new to captives or seeking an update, we invite you to attend our session designed to outline the essentials of captive insurance. We will address the three stages: feasibility, implementation, and management, providing an in-depth analysis from various industry perspectives. This session will offer a comprehensive review of captive feasibility and detail the subsequent steps necessary to ensure the captive insurance company continues to deliver value to its insureds. Additionally, we will explore potential enhancements and expanded coverage options that the captive may offer.

With a growing market for captives and creative solutions, curiosity rises about how legacy experts can assist. Learn how your captive can utilize their capital more efficiently, redeply their capital to other lines of business, eliminate unwanted legacy business, or, in the case of dormant captives or captives that no longer fit their original purpose, exit the captive space completely.

Our panelists will discuss runoff in general and as it relates to the captive market from both the perspective of the buyer and the seller. The panel of experts will provide case studies on actual transactions. Parent companies, captives and captive managers will see how looking to the exit solutions offered by the legacy market can be financially beneficial, ease administrative burdens, free up resources to focus on other business avenues and/or secure a finality for their captives.

Group captives can be great solutions to help manage total cost of risk for the middle-market segment if they are set-up properly and well-managed. The purpose of this session is to bring clarity to the benefits of a group captive program and how these differ from single parent and cell structures in size, scope and usage. Participants will leave
with a better understanding of the types of risks group captives serve best, the coverages typically considered, how to thoughtfully market/grow them, and how to ensure they are appropriately funded/managed. We will also dive into critical start-up considerations like domicile selection, key reinsurance protections, and minimum spread of risk requirements.
Lastly, we will look at a case study that highlights the ideal candidate criteria as well as key factors that draw new member participation for long-term engagement.
The group captive member will explain their experience in a group captive while complementing the captive manager’s notes on pros and cons of joining a group captive. Hartford will elaborate on their experience with HavenRe members and underwriting risk.

In a post Vesttoo debacle world, each stakeholder in a fronting arrangement has been impacted by the events that were uncovered in 2023. You will hear perspectives from a fronting carrier representative, captive owner and captive manager as to how their environment has changed as a result of greater diligence and scrutiny and what steps are being taken to mitigate risks in the future. The session will also cover why fronting is used, players in the market and the mechanics of using this type of arrangement.

Risk management is the essential element of pre-captive planning and creates an environment that is more likely to lead to a stronger capital position. Risk management is a day-one directive that must run throughout the life of the captive. This presentation will provide real-life examples of how effective risk management enhances the benefits of a captive and builds an organizational culture that embraces risk awareness while building a successful captive.

After being in operation for a number of years captives often look very different from when they were first licensed. In this session, our panel of industry experts will discuss how captives can leverage their prior success and surplus growth and modify their business plans to navigate changes in the commercial market. In addition, the panel will discuss some latest market trends, the process for making changes to the business plan, and considerations regarding the captive investment program.

Up to date look at how the IRS is viewing the captive industry

Despite a large number of tax court cases, the term risk distribution is still remarkably ill-defined and vague, with the court offering only vague generalities as to the term's exact contours. But central to many cases is a statement that the law of large numbers is somehow involved and required.
But insurance long ago understood that the law of large numbers didn't strictly apply to a pool of risk. The law of large numbers only works when the sampled population complies with i.d.d.--the risks are independent and identically distributed. The latter is most assuredly not a feature of risks in a risk pool.
Ultimately, this means the tax court is requiring a captive to comply with something that it can't.
This panel will look at the following:
1.) Why Helvering v. Legierse, the case that first mentioned the term risk distribution, is a terrible case on which to base most captive insurance law in the Tax Court.
2.) Why the Tax Court's understanding of the risk distribution is mathematically andconceptually flawed
3.) How the insurance world understands risk distribution, how it differs from the Tax Court'scurrent understanding, and why it's superior to current Tax Court precedent.

Delving into the heart of the matter, seasoned asset managers Gary Greene and Danny Pugh will analyze the profound impact the upcoming U.S. presidential election could have on the economy and financial markets and how to strategically manage your portfolio considering the potential outcomes. During the session we will unravel the intricate relationship between politics and financial markets. Our objective is to provide a comprehensive understanding of how political dynamics and cycles can shape investor behavior, offering valuable insights for navigating the complexities of the financial landscape in the wake of this significant election.

“We have a new coverage to put into the captive but have no data.” Does this sound familiar? As the risk management landscape evolves, captives remain at the forefront of innovation. Captive owners are not only placing risks that are unaffordable in the commercial market but also risks that have never been offered there, such as risks related to climate change or artificial intelligence. Introducing a new coverage to your captive without historical data poses unique challenges. How do you price the unknown? This session dives into the art and science of pricing novel coverages when historical data is scarce or nonexistent. We’ll explore how actuaries evaluate these risks while ensuring they reflect a reasonable transfer of risk and premium to the captive.

Annual update on Captive Regulatory Environment