Enoch Starnes and Michelle Bradley recently authored an article for Captive International titled “Identifying Collateral Concerns for Captives.” Many insurance professionals interested in the captive industry may not have a solid understanding of collateral concepts, so the article focuses on a high-level overview of the collateral formula, common collateral issues, and suggestions on how to approach collateral negotiations. By utilizing the information and guidelines provided in the article, readers should be better equipped to identify and alleviate collateral concerns within their own captive.
As a reminder, one of our recent entries to the Risk Management Blog focused on SIGMA’s new collateral brochure. If you or your client is unfamiliar with collateral concepts, this brochure will highlight the key issues to be aware of and summarize the analytics needed. As discussed in the article linked above, understanding the impact of collateral is a key part in determining whether a captive might be a good fit.
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