Increasing regulatory and corporate
governance requirements
Reporting requirements based on legislation and standard
audit requirements can be burdensome. Accurate figures
are key since reporting on gross and net positions and
reinsurance arrangements will directly impact the capital
the captive has to hold. Today's captive manager needs
control, auditability, and transparency over their
operational data such as premiums and claims. The ability
to access, analyze, and report on growing amounts and
types of data is central to meeting the evolving regulatory
and governance mandates.
Barriers to Adoption
Despite significant growth, organizations and captive insurers face several obstacles. This
section details some of challenges captive insurers face in today's ever-changing environment.
Parent-company financial reporting requirements
Until recently, many captives have underestimated the
challenges in satisfying the parent company's own financial
reporting requirements. It's hardly surprising that
corporate boards are calling for accurate, comprehensive
reporting on the captive's potential impact on the
enterprise's finances;
after all, a captive is part of its parent's balance sheet.
THE CAPTIVE INSURANCE RENAISSANCE | 3
