The most innovative thing about a captive is always how it writes its policies. The policies are the past, present, and future of captives — the centre of any captive’s universe.
Irvine, California (PRWEB) August 21, 2014
Active Captive Management’s founder and visionary, Frederick E. Turner is featured in Captive Insurance Times. (2014, August). VCIA Special Issue 53. Nothing ventured, nothing gained. (p. 16-22) Retrieved from http://www.captiveinsurancetimes.com/citimes/ as part of a US Panel of experts discussing captive considerations. The article confirms that the captive insurance industry has experienced growth in the United States and asserts the captive insurance industry has earned a reputation as the "go-to-strategic risk-management tool."
Calling on his 25 years of experience in the formation of captives in the alternative risk management industry, Mr. Fred Turner shares his insights and views on the use and growth of captives in the US. The article seeks to find the answer to why more US companies are venturing into the captive arena. To answer such a question, the article asks the following questions to a panel of experts including 5 questions addressed to Active Captive Management's founder, Frederick E. Turner.
Question 1: It has been noted that only one third of US captive owners treat their captives as insurance companies for US federal income tax purposes — have you seen this trend?
Turner: "While I agree that a captive should only be formed for risk management reasons, I also believe hat the tax advantages to a captive foster the risk management benefit..." (p.17)
Question 2: Operational and risk management value seem to be more important to the majority of owners — what is it about the modern captive that allows these to be generated?
Turner: "Operational and risk management value is best generated by and supported through the way the captive can write policy lines..." (p.17)
Question 3: Micro or 831(b) captives buck this trend — how do you see the rise of micro captive, and why?
Turner: "Any captive, no matter the size, evaluates the risks it writes the same as any other insurance company..." (p.18)
Question 4: Where does the pooling approach fit in to US companies’ methods, and where do you see these arrangements going in the future?
Turner: "In Active Captive Management's experience, captives with a pooling component are only ever created to facilitate risk distribution..." (p. 20)
Question 5: There are many strings to the modern captive’s bow—what other innovations do they have in store for US owners?
Turner: "The most innovative thing about a captive is always how it writes its policies..." (p. 22)
Please read the article for Fred Turner's complete answers. The article includes in depth answers from a US panel of various experts in the captive arena.
The article is available at the Captive Insurance Times website at: http://www.captiveinsurancetimes.com/citimes/ or at the Active Captive Management website at: http://www.activecaptive.com/pr/CITimes_issue_53.pdf
About Frederick E. Turner
Frederick E. Turner, J.D. is the founder of Active Captive Management. Fred serves as the Vice Chairman of the American Bar Association as an authority on captive insurance companies. Fred entered the field of alternative risk solutions in 1986 and has overseen the formation of over 400 captive insurance companies.
About Active Captive Management
Since 2005, Active Captive Management has assisted companies design and develop alternative risk transfer solutions in multiple industries.
Active Captive Management provides comprehensive management services encompassing, insurance policy underwriting and administration, claims processing, company accounting and captive regulatory compliance management.
As an independent captive manager, Active Captive Management values strategic alliances and partnerships with the client’s financial advisors and representatives. As each client is unique, the design of individual captive alternative risk solutions must be unique to the clients’ specific financial or risk protection goal and overall business entity design.