Risk Financing and Captives Articles

Reinsurance

AI and Reinsurance

2023-10-06 | Larry Schiffer

Big data and predictive analytics have been used by the insurance and reinsurance markets for years. Larry Schiffer examines this latest trend.

Catastrophe Risk Management

FAQs for Surviving Hurricane and Flood Losses

2023-09-01 | Robin K Olson

IRMI offers assistance in the form of informative tips for dealing with insurance claims.

Reinsurance 03

Back-to-Back and Belly-to-Belly: Coextensive Reinsurance Coverage

2023-06-16 | Larry Schiffer

Larry Schiffer discusses the concept and importance of back-to-back reinsurance coverage.

Captives 02

Captives and Residual Value Insurance

2023-04-14 | F Hale Stewart

Hale Stewart relates the seminal case of R.V.I. Guar. Co. v.Commissioner and its importance to captives.

Reinsurance 03

Captives, Pools, and Reinsurance—Oh My!

2023-04-07 | Larry Schiffer

Larry Schiffer discusses the issues arising from reinsurance coverage provided by third-party reinsurers to these entities.

Reinsurance 03

The Theory of Reinsurance

2022-12-13 | Larry Schiffer

Larry Schiffer explains why reinsurance is essential to the economy.

Captives 02

Reasons for Captive Formation Matter

2022-09-15 | F Hale Stewart

Reviewing case law, Hale Stewart shows that subjective intent—the reasons why a taxpayer forms a captive—is just as important as objective substance.

Reinsurance 03

Privity of Contract in Reinsurance

2022-09-01 | Larry Schiffer

Larry Schiffer examines privity and the legal and statutory exceptions that allow direct rights of action against reinsurers.

Reinsurance 03

Climate Change and Reinsurance

2022-06-03 | Larry Schiffer

Reinsurers will bear the brunt of the insured losses resulting from climate change. Larry Schiffer looks at the risks they face.

Reinsurance 03

Systemic Event Reinsurance

2022-03-17 | Larry Schiffer

The scope of this specialized coverage depends on key policy terms with clear definitions. Larry Schiffer explains.

Captives 02

Understanding Captive Insurance

2021-11-17 | F Hale Stewart

Hale Stewart guides you to a better understanding of captive insurance so you can recommend or implement as warranted.

Reinsurance 03

The Reinsurer's Right to Information

2021-09-15 | Larry Schiffer

Access to records clauses grant reinsurers the right to inspect the ceding company's records. Larry Schiffer examines their enforceability and scope.

Captives 02

Captives 101: What Are They, and Why Do I Want One?

2021-07-01 | Joe R McDonald

Captives 101: What Are They, and Why Do I Want One?—Joe McDonald introduces captives, explaining what they are, their purpose, structure, operation, and advantages.

Catastrophe Risk Management

Dealing with Winter Storm Damage

2021-02-19 | Robin K Olson

In light of the devastating storms that hit the United States, IRMI is providing advice on what damage is covered and tips on filing insurance claims.

Reinsurance 03

Reinsurance Arbitrators and Their Obligations

2021-01-22 | Larry Schiffer

Reinsurance Arbitrators and Their Obligations—Larry Schiffer explains why reinsurance arbitration is so unique and the problem of potential bias.

Claims Management 03

The Dilemma of Insuring Virus Claims

2021-01-15 | Christopher E Mandel

The Dilemma of Insuring Virus Claims—It's going to take risk mitigation strategies as well as risk transfer, per Chris Mandel.

Claims Management 03

Telemedicine in the Age of the Pandemic

2020-10-02 | Christopher E Mandel

Telemedicine in the Age of the Pandemic—Telemedicine and its derivatives are more relevant than ever during COVID-19. Chris Mandel explains.

Reinsurance 03

COVID-19 Losses and Reinsurance Aggregation

2020-08-28 | Larry Schiffer

COVID-19 Losses and Reinsurance Aggregation—Larry Schiffer explains the aggregation provision found in reinsurance contracts as it pertains to the pandemic.

Claims Management 03

Presumption of WC Claim Compensability in the Age of COVID

2020-07-03 | Christopher E Mandel

Presumption of WC Claim Compensability in the Age of COVID—From the "Grand Bargain" to the pandemic, Chris Mandel looks at the impacts.

Reinsurance 03

The Novel Coronavirus and Reinsurance

2020-05-29 | Larry Schiffer

The Novel Coronavirus and Reinsurance—While reinsurance is the backstop for the insurance industry, Larry Schiffer warns that it is not the backstop for the country.

Claims Management 03

Claims Management and Effective Risk Management

2020-03-20 | Christopher E Mandel

Claims Management and Effective Risk Management—Claims are the outgrowth of risk and exposure. Chris Mandel relates their relationship.

Reinsurance 03

Social Inflation: What Is It and Why Should Reinsurers Care?

2020-02-28 | Larry Schiffer

Social Inflation: What Is It and Why Should Reinsurers Care?—It brings unpredictability to insurance claims, warns Larry Schiffer, which impacts reinsurance.

Claims Management 03

Bad Faith, Litigation Trends, and Emerging Tactics

2020-01-10 | Christopher E Mandel

Bad Faith, Litigation Trends, and Emerging Tactics—Chris Mandel examines legal costs that contribute significantly to the total cost of claims.

Reinsurance 03

A Reinsurer's Right to Recoveries

2019-12-20 | Larry Schiffer

A Reinsurer's Right to Recoveries—Salvage and subrogation are an essential part of the risk-spreading feature of insurance and reinsurance. Larry Schiffer explains.

Catastrophe Risk Management

Ghost Building: What Is It, and How Do You Insure One?

2019-11-22

Learn how to identify and handle ghost buildings, a traditionally overlooked risk in construction, in this article by Swiss Re.

Catastrophe Risk Management

FAQs for Surviving Tornado Losses

2019-11-01 | Robin K Olson

IRMI offers information about dealing with tornado insurance claims.

Claims Management 03

The Future of Workers Compensation Claim Systems

2019-09-27 | Christopher E Mandel

The Future of WC Claim Systems—Chris Mandel reviews Scenarios for the 2030s: Threats and Opportunities for Workers' Compensation Systems.

Reinsurance 03

Captive Arrangements and Reinsurance

2019-08-30 | Larry Schiffer

Captive Arrangements and Reinsurance—Reinsurance plays a critical role in captive arrangements and can manifest in many different forms, per Larry Schiffer.

Captives 02

Elements of Insurance

2019-08-16 | F Hale Stewart

Elements of Insurance—There are certain elements that must be present in all insurance transactions. Hale Stewart examines them.

Claims Management 03

Federal Terrorism Reinsurance Claim Recovery

2019-06-28 | Christopher E Mandel

Christopher Mandel reviews the history and the Federal Terrorism Reinsurance claims process.

Reinsurance 03

Consolidation of Reinsurance Disputes under Reinsurance Contracts

2019-06-07 | Larry Schiffer

Consolidation of Reinsurance Disputes under Reinsurance Contracts—While not common, Larry Schiffer warns, having multiple reinsurers requires coordination.

Catastrophe Risk Management

Natural Catastrophe Management

2019-05-03 | Joe DiRubbo

The risk of a natural catastrophe and secondary perils is a big one. Joe DiRubbo examines the issues.

Claims Management 03

Examining WC Waivers of Subrogation

2019-04-12

While often required by contract, waivers pose significant risk to subcontractors' loss experience. Glenn Brown explains.

Claims Management 03

Examining WC Waivers of Subrogation

2019-04-12

While often required by contract, waivers pose significant risk to subcontractors' loss experience. Glenn Brown explains.

Claims Management 03

WC Court Rulings, Legislation, and Advocacy-Driven Claim Outcomes

2019-03-29 | Christopher E Mandel

WC Court Rulings, Legislation, and Advocacy-Driven Claim Outcomes—Worker advocacy is worth the investment and does have an impact, per Chris Mandel.

Reinsurance 03

Interplay of Loss Portfolio Transfers and Other Reinsurance Contracts

2019-03-08 | Larry Schiffer

Interplay of Loss Portfolio Transfers and Other Reinsurance Contracts—To avoid problems, Larry Schiffer says it's important to determine how existing reinsurance contracts will interact with an LPT.

Captives 02

Who Should Form a Captive?

2019-02-15 | F Hale Stewart

Who Should Form a Captive?—Hale Stewart takes a look at the reasons companies decide to form a captive insurance company.

Claims Management 03

Captive Claim Management

2019-01-18 | Christopher E Mandel

Captive Claim Management—Chris Mandel looks at the similarities and differences of managing claims for a captive.

Reinsurance 03

Reinsurance Contract Wording Revisited

2018-12-21 | Larry Schiffer

Reinsurance Contract Wording Revisited—Lack of clarity may cause ambiguities to rise. Larry Schiffer examines the problems.

Catastrophe Risk Management

Implementing Natural Hazard Resilience throughout a Large Organization

2018-11-30 | Nathan C Gould

Implementing Natural Hazard Resilience—Nathan Gould explains the importance of developing a natural hazard design standard to increase facility and operational resilience.

Captives 02

Things To Know about Captive Insurance Companies

2018-11-16 | Donald J Riggin

Don Riggin provides a "CliffsNotes"-style understanding of captives and their uses.

Claims Management 03

Workers Compensation Claims and the Opioid Impact Revisited

2018-09-28 | Christopher E Mandel

Workers Compensation Claims and the Opioid Impact Revisited—Chris Mandel looks at the crisis and efforts to quell the tide.

Reinsurance 03

Vacating a Reinsurance Arbitration Award for Evident Partiality

2018-09-21 | Larry Schiffer

Vacating a Reinsurance Arbitration Award for Evident Partiality—Undisclosedrelationships can doom awards. Larry Schiffer explains.

Claims Management 03

Appraiser Disqualified for Contingent Fee

2018-08-24 | Barry Zalma

Appraiser Disqualified for Contingent Fee—Barry Zalma discusses a Colorado case emphasizing the need for appraisers and umpires to be impartial and fair.

Claims Management 03

Greedily Contesting Claim Recovery Can Backfire

2018-07-27 | Barry Zalma

Greedily Contesting Claim Recovery Can Backfire—Barry Zalma relates a suit for total disability that didn't go well for the insured.

Claims Management 03

Insurtech and the Claim Function

2018-07-13 | Christopher E Mandel

Insurtech and the Claim Function—The insurance claim process has much to gain from technological advances, per Christopher Mandel.

Reinsurance 03

Insurtech, Disruptive Technologies, and Reinsurance

2018-06-29 | Larry Schiffer

Insurtech, Disruptive Technologies, and Reinsurance—How we buy insurance is changing, per Larry Schiffer, and the way reinsurers provide security for insurers will have to change too.

Claims Management 03

Insurance Claim Resolution and Settlement

2018-03-23 | Christopher E Mandel

Insurance Claim Resolution and Settlement—Chris Mandel looks at ways to reach faster and more equitable and efficient claim closure.

Reinsurance 03

Has Bellefonte Met Its Match?

2018-03-16 | Larry Schiffer

Has Bellefonte Met Its Match?—In reinsurance, the established Bellefonte rule may be in jeopardy. Larry Schiffer explains.

Captives 02

Do Captives Save Money?

2018-03-02 | Donald J Riggin

Don Riggin compares captives to other risk financing options—deductible plans.

Captives 02

Captives Persist Despite the New Tax Law

2018-02-02 | Michael R Mead

Captives Persist Despite the New Tax Law—There are many reasons (besides taxes) to form a captive, per Mike Mead.

Claims Management 03

Claim Evaluation: Determining Valuation

2018-01-19 | Christopher E Mandel

Claim Evaluation: Determining Valuation—Establishing claim value is the heart of the process. Chris Mandel describes the components.

Reinsurance 03

Confidentiality Agreements in Reinsurance Disputes

2017-11-17 | Larry Schiffer

Confidentiality Agreements in Reinsurance Disputes—Learn about the origins, the problems, and the courts' response from Larry Schiffer.

Risk Financing Info

Self-Insured Retentions versus Deductibles

2017-11-10 | Donald J Riggin

Don Riggin outlines the differences between self-insured retentions and deductibles, and the collateral implications of each.

Claims Management 03

Looking at the Tort of Bad Faith

2017-11-03 | Barry Zalma

Looking at the Tort of Bad Faith—Although around for decades, Barry Zalma argues the tort should be put down like a vampire.

Catastrophe Risk Management

Multi-Hazard Design to Improve Facility Resilience

2017-10-13 | Nathan C Gould

Multi-hazard Design To Improve Facility Resilience—When building, consider strengthening building codes, advises Nathan Gould.

Claims Management 03

Claim Investigation: Reaching Resolution

2017-10-06 | Christopher E Mandel

Chris Mandel discusses efforts necessary close a claim, from gathering evidence to litigation to setting reserve.

Captives 02

Form a Captive? No Thank You

2017-08-11 | Donald J Riggin

Don Riggin takes a quick look at reasons not to go the captive route.

Claims Management 03

Claim Reporting Best Practices

2017-06-23 | Christopher E Mandel

Chris Mandel examines the first of five major components of the claim management process, whether for insured, partially insured, or uninsured claims.

Reinsurance 03

Is It over Yet? "Functus Officio" in Reinsurance Arbitrations

2017-06-23 | Larry Schiffer

Functus Officio in Reinsurance Arbitrations -- Larry Schiffer explains how to solve errors, mistakes, and ambiguities in final awards.

Claims Management 03

The Claim Function and Best Practices

2017-03-31 | Christopher E Mandel

Chris Mandel explains the fundamentals of claims management and the best ways to get to reasonable outcomes for all parties.

Reinsurance 03

Blockchain Technology and Reinsurance

2017-03-10 | Larry Schiffer

Blockchain technology has the potential of radically changing the way insurance and reinsurance is placed and used in the future.

Claims Management 03

Insurance Claim Fraud and Social Media

2017-01-13 | Christopher E Mandel

Insurance fraud is increasing, but law enforcement and social media may help slow it down.

Reinsurance 03

Exclusive Arbitral Authority Dangers in Reinsurance Contracts

2016-12-09 | Larry Schiffer

Problems with specifying arbitral authority/rules in reinsurance contracts can occur; flexibility is needed if overly specific exclusive provision is used.

Captives 02

IRS Designates Sec. 831(b) (Small Captive) as Transactions of Interest

2016-12-02 | Donald J Riggin

Learn about the recent IRS transaction of interest announcement and its effect on Sec. 831(b) captives.

Reinsurance 03

What Is a Financial Interest Clause in a Reinsurance Contract?

2016-08-19 | Larry Schiffer

New financial interest clauses are designed to help mitigate legal/regulatory issues in global insurance coverage for multinational policyholders.

Claims Management 03

Opioids: a Stumbling Block to Good Claim Outcomes

2016-07-22 | Christopher E Mandel

For injured workers on opioids, claims professional vigilance can facilitate better results.

Reinsurance 03

The Reinsurance Information Free-for-All Highway

2016-06-24 | Larry Schiffer

Requests for reinsurance information are proliferating and expanding ininsurance litigation.

Risk Financing Info

The Value of Insurance

2016-05-06 | Donald J Riggin

Problems of the current model for transferring and managing risk. Other viable solutions to make buying insurance profitable?

Claims Management 03

Managing Claims for the Benefit of Consumers

2016-03-18 | Christopher E Mandel

Whether occupational or injury or property casualty insurance claims, put consumers first.

Reinsurance 03

Allocation in the Mind of the Ceding Insurer

2016-03-11 | Larry Schiffer

Allocation in the Mind of the Ceding Insurer -- Where long-tail claims span many years and policies, Larry Schiffer explains allocation may be more art than science.

Captives 02

Captive Feasibility Studies—Necessary?

2016-02-26 | Donald J Riggin

Don Riggin compares various types of feasibility studies and the value—or not—of each.

Catastrophe Risk Management

Obtaining the Right Builders Risk Insurance Coverage

2016-02-05 | Christopher M Brophy, David G Jordan

You're building an office building, residential complex, hotel, or multi-use construction project for an estimated cost of $120 million, and your lender says it wants $120 million of insurance coverage for wind storm, flood, and other perils. But wait—is that amount suitable for the project?

Reinsurance 03

Clash Cover and Bad Faith

2015-12-11 | Larry Schiffer

In reinsurance, this coverage can insure judgments in excess of the cedinginsurer's policy limits. Larry Schiffer explains.

Claims Management 03

Next-Level Claim Strategies

2015-07-24 | Christopher E Mandel

Chris Mandel explains how such strategies can provide a clear advantage over traditional approaches and offer a competitive advantage for organizations that effectively deploy them.

Reinsurance 03

The Interplay between Fronting and MGA Arrangements

2015-05-29 | Larry Schiffer

Frequent reporting, auditing, and spot-checking are critical to maintaining a healthy managing agency arrangement. Larry Schiffer explains.

Captives 02

Captive Profits without Third-Party Business

2015-04-17 | Donald J Riggin

Savvy captive owners know how to turn the cost center into a valuable company asset. Don Riggin explains.

Claims Management 03

Workers Compensation Options in Claims Management

2015-04-03 | Christopher E Mandel

When it comes to workers comp, many states benefit from giving employers a choice, says Chris Mandel.

Reinsurance 03

The "Secret" World of Reinsurance

2015-03-01 | Larry Schiffer

Is confidentiality preserved when going into court to confirm an arbitration award? Larry Schiffer discusses the issues.

Captives 02

Captive Stories: The Genesis of Risk Shifting and Risk Distribution

2015-01-01 | Donald J Riggin

Don Riggin digs deep to discuss a 1941 ruling that an annuity and an insurance policy produced no insurance risk.

Reinsurance 03

Which Came First, the Insurance Policy or the Reinsurance Contract?

2014-12-01 | Larry Schiffer

Larry Schiffer explains there is no boundary to how a reinsurance contract may limit—or expand—coverage available to the ceding insurer.

Captives 02

What Is Controlled, Unaffiliated, Insurance Business in a Captive?

2014-10-01 | Donald J Riggin

Donald Riggin looks at 831(b) captives and what is meant by "controlled" unaffiliated business.

Reinsurance 03

When Is a Reinsurance Treaty Not a Reinsurance Treaty?

2014-09-01 | Larry Schiffer

Courts interpret well-known industry terms in ways industry practitioners may find shocking. Larry Schiffer discusses some cases.

Catastrophe Risk Management

Insurance Considerations in Operational Resilience

2014-08-01 | Christopher M Brophy

Christopher Brophy examines the practical considerations for recovery planning and how well the insurance program melds.

Captives 02

Captives: Renting versus Owning—The Debate Continues

2014-07-01 | Donald J Riggin

Don Riggin looks at the pros and cons of each, particularly the tax deductibility of premiums.

Reinsurance 03

When Contracts Collide: Complex Reinsurance Programs

2014-06-01 | Larry Schiffer

Where reinsurance and other contracts collide, courts look at the language of each contract. Larry Schiffer discusses a recent case on point.

Market Practices

Looking at HOA Risks

2014-04-01 | Peter Polstein

Pete Polstein looks at home owners' association and master association entity risks.

Reinsurance 03

What Does "Written as Such" Really Mean?

2014-03-14 | Larry Schiffer

Larry Schiffer explains the importance of achieving greater clarity in reinsurance contract wording to reduce the potential for disputes.

Catastrophe Risk Management

Covering Sinkhole Losses

2013-09-01 | Christopher M Brophy

Christopher Brophy describes the scope of sinkhole losses and available coverage.

Market Practices

A Brief Look at Insuring Small Municipalities

2013-09-01 | Peter Polstein

Smaller risks often require special considerations. Peter Polstein takes a look at insuring these risks.

Reinsurance 03

Reinsurance and Ever-Expanding Regulation and Oversight

2013-09-01 | Larry Schiffer

Larry Schiffer provides an introduction to this very broad topic that is becoming worldwide in its scope.

Reinsurance 03

Reinsurance and Emerging Risks

2013-06-01 | Larry Schiffer

Larry Schiffer explains the danger of future unexpected exposures to the industry and reinsurers in particular.

Reinsurance 03

Follow-the-Fortunes: Reasonableness Is in the Eye of the Beholder

2013-03-02 | Larry Schiffer

Reasonableness is the catchword in analyzing the scrutiny brought to post-settlement reinsurance allocations, per Larry Schiffer.

Reinsurance 03

What's Natural about the Expiration of In-Force Policies When a Reinsurance Contract Terminates?

2012-12-15 | Larry Schiffer

"Natural expiration" relates to the obligation after policy termination. Larry Schiffer explains.

Captives 02

Captive Loan-Backs versus Corporate Receivables

2012-10-01 | Donald J Riggin

An interesting alternative to loan-backs is receivables factoring to convert a nonliquid asset into cash, per Don Riggin.

Reinsurance 03

Underwriting and Claims Clauses in Reinsurance Agreements

2012-09-01 | Larry Schiffer

Reinsurers often want certain understandings put in writing about how the ceding insurer underwrite and handle claims. Larry Schiffer provides examples.

Captives 02

Captives and Life Insurance

2012-07-01 | Michael R Mead

Yes, says Michael Mead, captives are used to provide life insurance, and he explains how.

Reinsurance 03

When Does "Incurred" Mean "Incurred" for Insurance and Reinsurance Purposes?

2012-06-01 | Larry Schiffer

Losses, obligations, expenses, and liabilities are incurred. Larry Schiffer explains what that means for insurance/reinsurance purposes.

Captives 02

The NRRA's Effect on Captives—What We Know

2012-05-01 | Donald J Riggin

The Nonadmitted Reinsurance Reform Act deals with how surplus lines taxes on nonadmitted insurance premiums are levied. Don Riggin explains.

Captives 02

Medical Stop-Loss Group Captives

2012-02-01 | Donald J Riggin

Don Riggin explains how to cover claims in excess of a company's per-occurrence, and sometimes aggregate, self-insured losses.

Reinsurance 03

What Time Is It? Determining the Statute of Limitations in Reinsurance Disputes

2012-02-01 | Larry Schiffer

The trick, says Larry Schiffer, is determining when the clock starts to run.

Captives 02

The Use of Captives in Wealth Management

2012-01-21 | Michael R Mead

Michael Mead provides a quick glimpse into this method of sheltering assets.

Catastrophe Risk Management

Catastrophic Chemical Industry Losses—Structuring Coverage and Maximizing Recovery

2012-01-01 | Christopher M Brophy

Maximizing insurance coverage after a catastrophic loss is especially complex for chemical producers. Chris Brophy elaborates.

Reinsurance 03

More Porridge Please: Reinstatements in Reinsurance

2011-12-01 | Larry Schiffer

Reinsurance limits can be reinstated by adding a reinstatement provision to the policy (IRMI.com article)

Claims Management 03

The Next Level of Business Income Coverage

2011-11-01

Timothy King explains how insurance claims from off-premises events can harm business if not insured.

Captives 02

Surplus Lines Insurance Taxation Remains Murky

2011-10-01 | Michael R Mead

Captive insurance law and SLIMPACT and NIMA response pose premium taxation dilemma. (IRMI.com article)

Catastrophe Risk Management

Building the Right Builders Risk Policy

2011-10-01 | Christopher M Brophy

Construction catastrophes can doom a business. Christopher Brophy explains how builders risk insurance, properly designed, can save the firm.

Reinsurance 03

Reinsurance Terminology Explained: Bordereau

2011-08-13 | Larry Schiffer

Reinsurance Terminology Explained: Bordereau and Other Terms of Art—Larry Schiffer demystifies reinsurance jargon.

Reinsurance 03

Multiparty Reinsurance Contracts—All for One and One for All

2011-05-01 | Larry Schiffer

Larry Schiffer discusses the act-as-one provision found in many arbitration clauses.

Catastrophe Risk Management

Insurance Coverage Considerations for Claims Resulting from the Japanese Earthquake

2011-04-01 | Christopher M Brophy

Assessing the impact and coverage is no simple task. Chris Brophy elaborates.

Reinsurance 03

Who's on First? Conflicting Arbitration and Service-of-Suit Clauses

2011-03-01 | Larry Schiffer

Larry Schiffer relates cases involving the conflict between the clauses in reinsurance contracts and offers contractual fixes.

Captives 02

A Cautionary Tale about Captive Risk Distribution

2011-02-01 | Donald J Riggin

Don Riggin discusses the portfolio theory and its influence on risk distribution.

Captives 02

Evaluating Your Captive's Capital and Surplus Requirements

2010-12-04 | Donald J Riggin

Excess surplus is not always a good thing, per Don Riggin, as it represents underemployed capital for a very unlikely event.

Market Practices

Claims Administration—The Insurance Service

2010-12-01 | Peter Polstein

Pete Polstein stresses the importance of claims administration.

Reinsurance 03

Protect against Inflation with the Reinsurance Index Clause

2010-12-01 | Larry Schiffer

To stem the effect of inflation on long-tail claims under excess-of-loss reinsurance, Larry Schiffer says consider an index clause.

Claims Management 03

Controlling Claims Leakage through Technology

2010-11-01

Proper use of claims systems, basic reporting analysis, and advanced tools such as predictive analytics can help reduce the ultimate cost of risk, per David Tweedy.

Captives 02

Captive Managers—The Basics

2010-10-01 | Michael R Mead

Michael Mead discusses the captive manager's role, responsibilities, types, and fees.

Captives 02

Property Insurance Captives—A Funding Primer

2010-08-01 | Donald J Riggin

Don Riggin explains why, when, and how a captive can structure its funding for property risks.

Captives 02

Captives and Employee Benefits

2010-07-01 | Michael R Mead

Captives may offer employers a solution for compliance with healthcare reform. Michael Mead explains.

Reinsurance 03

My Reinsurer Is in Runoff. What Do I Do Now?

2010-06-01 | Larry Schiffer

Larry Schiffer discusses creative solutions being employed by ceding insurers and brokers.

Captives 02

Direct Procurement Revisited

2010-04-01 | Michael R Mead

Captives: Learn the laws both where you do business and where you issue evidence of coverage, advises Michael Mead.

Reinsurance 03

Prejudice, Smejudice: Late Notice in the Face of a Condition Precedent

2010-03-01 | Larry Schiffer

Courts carefully analyze whether a notice provision is indeed a condition precedent. Larry Schiffer reviews the caselaw.

Captives 02

Captive Underwriting Profits without Third-Party Business

2010-02-01 | Donald J Riggin

Don Riggin shows how a single-parent captive can reduce expenses and convert some of it into underwriting income.

Claims Management 03

Litigation Management—Crucial but Confusing

2010-02-01

Litigation is expensive. Glenn Brown explains how to manage costs.

Reinsurance 03

In Defense of Reinsurance

2010-01-15 | Larry Schiffer

Bashing reinsurers seems popular today, but Larry Schiffer explains their importance to the economy.

Captives 02

The Captive/Large Deductible Debate—A Philosophical Perspective

2009-12-01 | Donald J Riggin

Business needs to look beyond pure economics, advises Don Riggin.

Claims Management 03

Reduce Claims To Improve WC Mod

2009-12-01

Manage workers compensation experience rating plans to curb expenses, per David Ackerman.

Captives 02

Claims and the Captive

2009-10-01 | Michael R Mead

Can a captive deny its owner's claim? Certainly, per Michael Mead, and risk managers need to be prepared.

Captives 02

Do Captives Earn Profits?

2009-08-15 | Donald J Riggin

The answer as to whether captives earn profits is in the eye of the beholder, according to Don Riggin.

Reinsurance 03

Playing the Name Game—An Update on Cut-Through Clauses

2009-08-15 | Larry Schiffer

Recent case law, provided by Larry Schiffer, suggests provisions must be precisely tailored to be effective.

Claims Management 03

Workers Compensation Return-to-Work Programs: Cost Savers?

2009-08-01

Insurance savings can be achieved if done correctly. Glenn Brown explains.

Captives 02

Agency Captives Revisited

2009-07-01 | Michael R Mead

Michael Mead explains the strong reasons to consider establishing an agency captive and the hazards to avoid.

Reinsurance 03

Third-Party Guarantees of Reinsurance Obligations: I Guarantee It!

2009-06-01 | Larry Schiffer

Typically, reinsurance arrangements do not require security to obtain performance, but in this economic downturn, many ceding insurers are. Larry Schiffer explains.

Claims Management 03

Reducing Workers Compensation Claims during a Layoff

2009-05-01

Lisa Hartman outlines the layoff issues risk managers face and suggests strategies to help guide them.

Captives 02

The Economic Bailout and Its Unintended Consequences

2009-04-01 | Michael R Mead

The 'economic crisis' is showing itself in surprising ways to captive owners and managers. Mike Mead explains.

Reinsurance 03

Clash Cover Reinsurance and Economic Catastrophe Losses

2009-03-01 | Larry Schiffer

Typically, reinsurance arrangements do not require security to obtain performance, but in this economic downturn, many ceding insurers are. Larry Schiffer explains.

Claims Management 03

Workers Compensation Reserves—Dollars and Sense

2009-02-01

William Quinn explains how improper loss reserving can affect insurers and employers, and should be monitored closely.

Reinsurance 03

Turnabout Is Fair Play—Reinsurers Now Have Credit-Risk Worries

2008-12-01 | Larry Schiffer

Larry Schiffer explores the developing trend by reinsurers to require contractual provisions that protect them against the credit risk associated with their reinsureds.

Claims Management 03

Is Self-Administration Ever the Right Answer?

2008-11-01

Glenn Brown explores the decision-making process along with the risks, possible rewards, and challenges of administering your own claims.

Claims Management 03

Technology and Claims: Blessing or Curse?

2008-08-01

RMIS Review Editor David Tweedy takes a look at the advantages and disadvantages of technological progress in claims management.

Reinsurance 03

Where Has Traditional Reinsurance Gone?

2008-08-01 | Larry Schiffer

Alternatives to traditional reinsurance have gained significant momentum. Larry Schiffer looks at these options.

Claims Management 03

Third-Party Administrators: Quality versus Price

2008-06-01

The wise consumer will analyze the quality indicators first and then compare price when selecting a TPA. Glenn Brown explains.

Catastrophe Risk Management

Facility Damage Evaluation Following Major Disasters

2008-05-10 | Nathan C Gould

Dr. Nathan Gould explains why an effective facility evaluation plan should include the preparation of a Post-Disaster Facility Inspection Manual.

Claims Management 03

An Insurance Claims Management Retrospective

2008-04-01

William Quinn Jr. takes a look at the claims management experience, then (1950s) and now (2000s).

Reinsurance 03

Keeping the Information Flowing: Loss Notice and Reporting Clauses in Reinsurance Contracts

2008-02-01 | Larry Schiffer

Larry Schiffer discusses these clauses and some of the ramifications that flow from the obligation to report and provide notice of claims.

Market Practices

Risk Assessments and Peer Reviews

2007-12-01 | Peter Polstein

Whether conducted in-house or by an outside consultant, a risk and insurance review is a good idea. Pete Polstein explains.

Captives 02

Captive Insurance Exit Strategy

2007-11-01 | Michael R Mead

Mike Mead warns that ending the use of a captive is not so simple as ceasing to do business with it or funding its operations.

Captives 02

Has the IRS Lost Its Collective Mind?

2007-11-01 | Donald J Riggin

The recently proposed IRS regulations for single-parent captives are a step in the wrong direction. Don Riggin explains.

Reinsurance 03

Adventures in Contract Wording: Jury Still Out on Meaning of "Sole Judge"

2007-10-01 | Larry Schiffer

Larry Schiffer warns drafters of reinsurance agreements to exercise caution when negotiating a deal involving a reinsurance sole judge clause.

Captives 02

Captives and Collateral

2007-08-01 | Michael R Mead

Michael Mead says the prudent captive owner will address the collateral issue early in the formation and often throughout the life of the captive.

Reinsurance 03

When the Government Is Your Reinsurer

2007-06-01 | Larry Schiffer

Displacing capacity from one of the largest catastrophe risk markets in the world has its economic ups and downs. Larry Schiffer explains.

Catastrophe Risk Management

Defining the Characteristics of a PML Study

2007-03-01 | Nathan C Gould

A seismic/extreme wind risk assessment requires an understanding of how the risk assessment and loss data will be utilized. Dr. Nathan Gould explains.

Reinsurance 03

The Honorable Engagement Clause (But I Thought I Had a Legal Contract!)

2007-03-01 | Larry Schiffer

Larry Schiffer explains why reinsureds and reinsurers have been moving away from incorporating honorable engagement language in their reinsurance contracts.

Risk Financing Info

The Importance of Calculating a Capital Charge for Insurable Risk Hedging Strategies

2007-02-01 | Donald J Riggin

Don Riggin bridges the gap between determining an optimal hedging strategy and the importance of converting that strategy into a capital charge.

Reinsurance 03

The Strain To Retain

2006-12-01 | Larry Schiffer

Larry Schiffer discusses the symbiotic relationship between the reinsured and the reinsurer, and the reinsurance contract provisions that affect this relationship.

Captives 02

Insuring Property Risks in a Captive

2006-10-01 | Donald J Riggin

Don Riggin explains that property captives present two competing dynamics: losses pay out all at once but when the policy year is over, it's really over.

Reinsurance 03

Reinsurance Arbitration—A Primer

2006-06-01 | Larry Schiffer

What's the difference between litigation and arbitration? Larry Schiffer provides a broad-strokes outline of the mysterious world of reinsurance arbitration.

Captives 02

How to Choose a Domicile That Works Best for Your Captive

2006-04-01 | Michael R Mead

Michael Mead provides the basic criteria to achieve success when selecting a domicile.

Reinsurance 03

Stuck in the Middle—The Reinsurance Intermediary

2006-03-01 | Larry Schiffer

Working with the right intermediary is key to a profitable reinsurance arrangement. Larry Schiffer explains.

Captives 02

Investment Strategies for Captives

2006-01-01 | Michael R Mead

Michael Mead discusses how captive premiums and reserves can grow over time and how these funds are held and invested.

Reinsurance 03

Contract Finality—What a Concept!

2006-01-01 | Larry Schiffer

Agreeing to terms and conditions of a reinsurance contract on the day of placement may reduce disputes arising out of ambiguous contract terms. Larry Schiffer explains.

Reinsurance 03

Avoiding the Reinsurance Credit Risk

2005-09-01 | Larry Schiffer

The best-case scenario for a reinsured is to have its reinsurance recoverables secured to avoid any unnecessary credit risk associated with obtaining reinsurance. Larry Schiffer explains.

Captives 02

Regulation of Captives: Who? Why? What Next?

2005-08-01 | Michael R Mead

Michael Mead explains how regulation of captives is inherently different from the regulation of a traditional insurer as respects audience, taxation, and oversight. He also provides food for thought for the future.

Catastrophe Risk Management

The Impact on Lifelines on the Estimation of Natural Hazard Loss

2005-07-01 | Nathan C Gould

Dr. Nathan Gould explains how loss of service of key lifelines can lead to increased downtime following a major natural disaster and significantly elevated business interruption costs.

Reinsurance 03

The Late Notice Defense in Reinsurance—Updated

2005-06-01 | Larry Schiffer

Larry Schiffer revisits the ways different states apply different prejudice or no-prejudice rules to a late notice defense by an insurer or reinsurer.

Captives 02

When Is Reinsurance Not Reinsurance?

2005-04-01 | Michael R Mead

Mike Mead looks at the risk management implications of reinsurance and excess insurance for captives. Lack of regulation and standardization complicates the matter.

Captives 02

Using Captives and Risk Retention Groups Together

2005-01-01 | Michael R Mead

By combining captives with risk retention groups, some have obtained admissibility without fronting, and gained the flexibility of a captive as a reinsurer. Michael Mead explains.

Catastrophe Risk Management

Understanding the Vulnerability of Hospitals to Natural Disasters

2004-12-01 | Nathan C Gould

If risks posed by natural hazards are not properly addressed, hospitals may themselves become victims of the disaster. James Bailey and Nathan Gould explain.

Reinsurance 03

The Naked Truth—The Reinsurer's Right to Information

2004-12-01 | Larry Schiffer

The Reinsurer's Right to Information—Access to records clauses grant reinsurers the right to inspect the ceding company's records. Larry Schiffer examines their enforceability and scope.

Captives 02

Taking a Closer Look at Captive Costs

2004-10-01 | Michael R Mead

Mike Mead breaks down the costs for a captive program - including taxes, boards, and bureaus; fronting fees; claims administration fees; and costs of loss control and ways to reduce them.

Market Practices

Medical Malpractice: Things To Consider

2004-10-01 | Peter Polstein

In his Insurance Industry Market Practices column, Peter Polstein looks at medical malpractice coverage and proper underwriting practices.

Reinsurance 03

Multiyear Policies and Annualization of Reinsurance Limits

2004-09-01 | Larry Schiffer

Where progressive injuries span more than a year, is the injury a separate occurrence in each of those years, and does the full liability limit apply? Larry Schiffer examines the case law.

Reinsurance 03

Insurer Insolvency and Reinsurance

2004-07-01 | Larry Schiffer

What happens to the reinsurance covering insurance policies when the insurer goes insolvent? Larry Schiffer discusses the issues, including recent case law.

Reinsurance 03

Follow-the-Fortunes Updated

2004-04-01 | Larry Schiffer

In an update of a 2001 article, Larry Schiffer examines how some new reinsurance cases have interpreted the follow-the-fortunes doctrine in environmental and asbestos contexts.

Catastrophe Risk Management

Managing Extreme Wind (Hurricane) Losses

2004-03-01 | Nathan C Gould

Dr. Nathan Gould discusses extreme wind hazards, historical loss exposure, and a methodical engineered approach to effectively manage/reduce wind losses.

Reinsurance 03

Up-Front about Reinsurance

2004-01-01 | Larry Schiffer

The fronting relationship can cause confusion. In this article, Larry Schiffer explains the basics of fronting and why it may be necessary for licensing, rating, pooling, or regulatory reasons.

Market Practices

Excess Follow Form versus Umbrella

2003-12-01 | Peter Polstein

Peter Polstein takes a look at excess insurance in this month's insurance industry market practices column. Coverage terms and conditions, and negotiations, are addressed.

Reinsurance 03

Understanding the Business-Covered Clause in a Reinsurance Contract

2003-11-01 | Larry Schiffer

Larry Schiffer explains the two generic types of reinsurance coverage -- losses-occurring-during and risks or policies-attaching contracts -- their importance, complicating factors, and hybrids.

Captives 02

Another Kind of Captive Growth: Risk Retention Groups Increase

2003-10-01 | Michael R Mead

Abandoned in the soft market, risk retention groups (RRGs) are on the rise, offering form, rate, claims, taxation, and admitted paper benefits. Michael Mead discusses the opportunities and challenges.

Catastrophe Risk Management

Performance Based Seismic Design

2003-10-01 | Nathan C Gould

Dr. Nathan Gould explains Performance Based Seismic Design - what it is, how it works, and why it is the seismic design methodology of the future.

Market Practices

Certificates of Insurance

2003-09-01 | Peter Polstein

Peter Polstein explains why the insurance certificates are one of the more dangerous documents that float between insureds, insurers, and a myriad of third parties.

Captives 02

The Role of the Domicile Manager

2003-08-01 | Michael R Mead

Mike Mead looks at captive management firms, who they are and what role they should play. Their goals, duties, and responsibilities are discussed.

Catastrophe Risk Management

Understanding the Language of Seismic Risk Analysis

2003-07-01 | Nathan C Gould

Even for those in the industry, the terminology used in the evolving field of seismic risk analysis can be confusing. Nathan Gould provides some definitions and clarifications.

Reinsurance 03

To Commute or Not To Commute, That Is the Question

2003-07-01 | Larry Schiffer

The reinsurer's obligation to cede and pay claims continues many years after the termination of the contract, unless it is commuted. Larry Schiffer explains.

Market Practices

Binders and Confirmation

2003-05-01 | Peter Polstein

Peter Polstein discusses insurance binders and why the placing agent or broker must make absolutely certain that all parties fully understand the coverage ramifications.

Catastrophe Risk Management

Quantifying the Risk for Progressive Collapse in New and Existing Buildings

2003-03-01 | Nathan C Gould

This is discusses quantifying the risk for progressive collapse in new and existing buildings.

Reinsurance 03

Who Owes Whom? Understanding Setoffs in Reinsurance

2003-03-01 | Larry Schiffer

There are many situations in reinsurance relationships where the concept of setoff may apply. Larry Schiffer explains the right, its origins, and its application.

Market Practices

Considering Alternative Risk Transfer

2003-02-01 | Peter Polstein

Peter Polstein examines the use of deductibles and self-insured retentions to help with the rising costs of insurance premiums.

Catastrophe Risk Management

Earthquake Performance of Nonstructural Components

2003-01-11 | Nathan C Gould

This is discusses earthquake performance of Nonstructural components.

Market Practices

Insurance Coverage Specifications in the Hard Market

2002-12-01 | Peter Polstein

It's important to cover all the potential areas of loss your firm faces, even if insurance is not available or affordable. Peter Polstein reviews coverage extensions you should consider.

Reinsurance 03

When Errors Occur in a Reinsurance Relationship

2002-12-01 | Larry Schiffer

Larry Schiffer examines the errors and omissions clause in reinsurance policies, including its history, proper drafting, use and misuse, and court interpretations.

Captives 02

Actuarial Projections and the Captive

2002-11-01 | Michael R Mead

Actuaries are crucial to the formation and success of captives. Michael Mead discusses the role of the actuary in understanding claims, establishing premiums, and projecting profits.

Market Practices

What Constitutes a Full Underwriting Submission

2002-10-01 | Peter Polstein

In the first article in a new topic Insurance Industry Market Practices, Peter Polstein describes the elements that are included in a full underwriting submission, using a recent casualty renewal as an example

Reinsurance 03

Late Notice in Reinsurance Claims: Does Prejudice Matter?

2002-09-01 | Larry Schiffer

The law of late notice in reinsurance varies from state to state. Here, Larry Schiffer briefly explores the late notice defense to payment under a reinsurance contract.

Captives 02

Choosing the Right Captive Domicile

2002-08-01 | Michael R Mead

In this article, Michael Mead discusses captive domiciles, their importance and what factors to consider when selecting one.

Catastrophe Risk Management

Optimizing the Management of Natural Disaster Exposure

2002-06-01 | Rick Clinton

Many companies feel their approach to managing their overall aggregate exposure to natural disasters is deficient. Rick Clinton examines some software and consulting options for handling the earthquake exposure.

Captives 02

Captive Structures

2002-04-01 | Michael R Mead

There are many different structures for a captive insurance company. Michael Mead discusses the most common structures and their potential uses.

Catastrophe Risk Management

Managing Earthquake Risk

2002-03-09 | Ronald Hamburger

Since September 11, risk managers have focused on man-made risk. However, Ron Hamburger explains the greater danger of natural catastrophes, particularly earthquakes, and how their risk should be assessed and handled.

Reinsurance 03

Sorting Out the Reinsurance Contract Morass

2002-03-01 | Larry Schiffer

Reinsurance terminology, like technical terms in other industries, seems unintelligible at first glance. In this article, Larry Schiffer defines the terms and their usage for the uninitiated.

Risk Financing Info

SPEs: A Post-"Enron" Perspective

2002-03-01 | Brent Clark

Brent Clark explains that special purpose entities/vehicles are not inherently evil but are a prevalent and potentially useful tool in modern corporate finance.

Reinsurance 03

If It Looks Like a Claim, and Sounds Like a Claim, Is It a Claim for Reinsurance Purposes?

2002-01-01 | Larry Schiffer

In this article, Larry Schiffer explains why a claim to an insurance company may not be a claim to a reinsurer, depending on the nature of the reinsurance provided.

Risk Financing Info

Financial Lines—The New ART Frontier

2001-12-01 | Brent Clark

Brent Clark explains how the blending of classic financial guarantee and surety markets with the alternative risk transfer ART field is resulting in the creation of a market willing to take a customized, problem solving approach to unique risk financing problems.

Reinsurance 03

Understanding Reinsurance Terminology—Follow-the-Fortunes

2001-10-01 | Larry Schiffer

Understanding Reinsurance Terminology—Follow-the-Fortunes—Larry Schiffer explains this bedrock doctrine that exemplifies the unique business partnership between the reinsured and reinsurer.

Reinsurance 03

The Trouble with Giving Away the Pen

2001-06-01 | Larry Schiffer

Managing general agents have always been used to provide special expertise to insurance/reinsurance companies. However, they are often viewed negatively. This article discusses some of the problems that arise in a managing agency relationship and suggests viable solutions.

Reinsurance 03

Cut-Through Provisions in Reinsurance Agreements

2001-03-01 | Larry Schiffer

A cut-through provision allows a party not in privity with the reinsurer to have rights against the reinsurer under the reinsurance agreement. Learn how cut-through endorsements are attached, triggered, and employed, and how they may be unenforceable in some jurisdictions.

Risk Financing Info

Commodity Price Insurance and FAS 133

2001-03-01 | Brent Clark

Brent Clark discusses how the new Financial Accounting Standard (FAS 133) affects the accounting treatment between derivatives and insurance when the risk is a CPR and how new alternative risk financing products may develop as a result.

Reinsurance 03

The Reinsurance Relationship—How Special Is It?

2000-12-01 | Larry Schiffer

While some have written off the duty in these modern times, most insurance and reinsurance professionals still adhere to the precepts of the legal duty of utmost good faith. This article examines this duty that is so fundamental to the reinsurance relationship and how it has changed.

Reinsurance 03

Adventures in Contract Wording: The Effect of Ambiguous Reinsurance Contract Language

2000-09-01 | Larry Schiffer

This article examines some of the problems that can occur because of imprecise reinsurance contract language and what can be done to avoid this scenario.

Reinsurance 03

Are Punitive Damage Awards Recoverable under Reinsurance Agreements?

2000-06-01 | Larry Schiffer

When an insured's bad faith claim against its insurer is successful and the court awards punitive damages, does the reinsurer have to reimburse the insurer for the punitive damages judgment? The answer to this question depends on the reinsurance contract provisions and whether punitive damages are reinsurable under the public policy of the relevant jurisdiction.

Reinsurance 03

Reinsurance Matters

2000-03-01 | Larry Schiffer

The quality of the reinsurance security purchased by the direct insurer is what helps to ensure that losses will be paid. Larry Schiffer looks at the reinsurance function, relationship, claims services, and fronting arrangements.

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