Setting the Standard
SRS has managed captives and other insurance vehicles for more than 25 years, and in that time, we’ve defined and operationalized the services a high-performing insurance company manager should provide to every client, no matter the size. Every decision we make is based on client needs and how best to serve them.
Rigorous Internal Controls and Compliance.
What makes a good captive manager? What does good service look like in the captive management industry? These aren’t easy questions to answer because “captive management” is not a well-defined service. Contracts tend to be long-term or evergreen, with little movement between managers. This means that an owner’s only frame of reference may be their experience with how the incumbent manager operates.
What should owners expect?
Your insurance company manager should be able to demonstrate it has a rigorous set of internal controls and compliance practices.
Right to the point. Prove it.
How do you know your potential insurance company manager has the internal controls and compliance practices in place to deliver consistent, reliable, high-quality service? Ask them to provide evidence of their commitment. Here’s where it gets a little tricky, though. How do you know that the processes they have in place are appropriate and effective? The truth is you don’t unless the evidence they provide follows a recognized standard.
Enter SSAE 18 / ISAE 3402 and why it matters
SRS is the first captive manager to make a global commitment to achieving the SSAE 18 / ISAE 3402 certification (Statement on Standards for Attestation Engagements No. 18), which is designed to evaluate and report on the controls and processes delivered by service organizations. It demonstrates that the company is capable of mitigating risks and protecting the interests of its clients.
SSAE 18 / ISAE 3402 is not specific to the insurance industry. It’s the standard for reporting on internal controls at companies providing outsourced services that affect another company’s financial statements. For those selecting an insurance company management firm, the certification provides evidence that the service provider has met stringent control standards and adheres to best practices. Some of the critical components included in the audit process include:
What it means for YOU
Data Privacy: Controls are Critical!
Protecting and maintaining the privacy of data is critical for all businesses today, but the insurance industry runs on data and lots of it. Depending on the type of captive, Personally Identifiable Information (PII) and Personal Health Information (PHI) may be needed for its operation.
The captive manager and anyone involved in receiving PII and PHI related to the captive must have the appropriate controls in place to protect the privacy of that data. The controls must comply with applicable data privacy regulations and to protect against liability for the captive.
How do you know that your captive manager has the appropriate controls in place? Ask your captive manager if they are following industry standards, such as NIST (National Institute of Standards and Technology) and/or ISO (International Organization for Standardization). If your captive is in a domicile that requires the captive insurance manager to have a Cybersecurity Framework, request a copy.
As climate change escalates the potential severity of certain weather-related natural disasters like hurricanes and wildfires, corporations face increased threats to their operations and financial stability. Captive insurance strategies are...
By: Chuck Scherer Catastrophe bonds, also known as cat bonds, are a crucial component of the insurance industry's risk management toolkit. Typically, these bonds provide insurance companies with financial protection...
The decision to buy or sell a captive insurance company isn’t made that often but can be a significant strategic opportunity under the right conditions. Andy Hulme, SRS EVP of...
Captive Insurance Times recently published an article featuring industry participants, including Isabel Mettetal SRS' Director of Cayman Captive Management, discussing their hopes for captives in Latin America, as well as...
Setting the Standard SRS has managed captives and other insurance vehicles for more than 25 years, and in that time, we’ve defined and operationalized the services a high-performing insurance company...
Anna Pereira, SRS Bermuda How can the captive industry adapt to the developing impact of climate change and adopt measures to mitigate impact to their shareholders, themselves, and the natural...
SRS’ Peter Child, CEO Europe and Richard Paris-Smith, Client Services Leader-Europe were recently featured as speakers during the Airmic Captive Forum. Peter Richard spoke about governance within the captive process, while...
Invest Barbados, Kirk Cyrus, Captive International, 2020 “Active risk financing using captives is inescapble given the expectations of future systemic risk events relating to climate change.” Kirk Cyrus, Strategic Risk Solutions...
Derek Bridgeman, Managing Director and Risk Consulting Practice Leader for SRS Europe, joins host Richard Crutcher on the Global Captive podcast to discuss interest in new captive formations in Europe...
CICR comment: Our editor emeritus, Mr. Rosenbaum, finds that the Greenguard (GG) program is the first really new development in the captive business sector to come along for a long time....
Captive Captive Podcast, Episode 26 March 29, 2020 Brady Young joins host Richard Crutcher on the Global Captive podcast to discuss the Covid-19 impact on captive insurance, broker consolidation and...
Captive Insurance Times, Issue 194 March 18, 2020 Phillip Giles of MSL Captive Solutions discusses how the COVID-19 pandemic could potentially affect self-funded health plans and medical stop-loss captives. It...
Captive Insurance Times, Issues 188 December 11, 2019 Mary McMorrow, head of Governance Services Europe at SRS Europe, discusses the firm’s specialised captive governance services offering. Set against a backdrop of new,...
Captive Insurance Times, October 16, 2019, Issue 184 David Lewis,Managing Director of SRS Europe, explains how, in the next few years, the market will see the unbundling of captive insurance...
Captive Insurance Company Reports, February, 2019 In late 2018 SRS in conjunction with IRMI organized a corporate governance survey to determine what kind of corporate governance some captive insurers, risk...
Captive Review, April, 2019 Mary McMorrow, head of Governance Services Europe at SRS Europe, provides some useful tips on governance considerations for captive insurers outsourcing services under Solvency II conditions....
Vermont Captive Insurance, April 16, 2019 In this article Derick White, Managing Director of Governance, Risk & Compliance explains that a captive insurer’s board of directors must fulfill its duty of...
Captive International, October 1, 2018 In this article in Captive International, Wendy Dine, Associate Director of SRS, discusses the growth in the use of group captive programs for medical stop...
Captive International, October 9, 2018 In this article in Captive International, Derick White and Stuart King of Strategic Risk Solutions, discuss the corporate governance requlations in US, European and offshore...
Captive.com, January 11, 2019 In this article written for Captive.com, Brady Young reflects on the captive insurance industry in 2018 and looks head to the coming year. As we begin...
Setting the Standard SRS has managed captives and other insurance vehicles for more than 25 years, and in that time, we’ve defined and operationalized the services a high-performing insurance company...
Financial Model of Parametric Insurance within a Captive The financial model of incorporating parametric insurance into a captive insurance company relies on predefined, measurable indices. When a certain event triggers...
Combining captive insurance with Insurance-Linked Securities (ILS) can offer significant long- term value and additional risk transfer capacity and capabilities for enterprise-scale companies. The ILS sector acts as a reliable...
Download the SRS whitepaper on Cell Vehicles, Domicile Differences. Protected Cell Companies – 25 Years In By Peter Child, CEO SRS Europe Twenty-five years ago, Protected Cell Company (‘PCC’) legislation...
Corporate insurance buying strategies are changing. Maybe it has taken the challenges being encountered in the continued hard market to finally shake things up. Buyers are getting frustrated, hemmed in...
The material presented in this report was the subject of our webinar: Captive Insurance – The State of the Market, held on Wednesday February 23, 2022. The captive insurance industry...
There is tension at the heart of every captive insurer. This fundamental tension arises from the fact that for every captive shareholder is also in some way, shape, or form...
Leveraging the Barbados Insurance Brand The year 2021 was one of significant growth for captive insurance in Barbados. There were 34 startups and according to the statistics released by the...
Anna Pereira, SRS Bermuda How can the captive industry adapt to the developing impact of climate change and adopt measures to mitigate impact to their shareholders, themselves, and the natural...
Captive International, October 1, 2018 In this article in Captive International, Wendy Dine, Associate Director of SRS, discusses the growth in the use of group captive programs for medical stop...
Captive Review, April, 2019 Mary McMorrow, head of Governance Services Europe at SRS Europe, provides some useful tips on governance considerations for captive insurers outsourcing services under Solvency II conditions....