Advocacy: Your Role in Shaping the Future of Captives

It is scary to learn that the majority of policy makers do not know what Captive Insurance is and the ways a Captive can aid businesses.  Do you ever wonder if there is anything you can do to stop the propagation of bad information about Captives pushed by critics?

SIIA Has Led Advocacy Efforts for Captives

Much has changed in the world of captives taking the 831(b) election since their formation in 1986. The Self-Insurance Institute of America, Inc. (SIIA) plays a major role in shaping the direction of the industry and prioritizes:

  • Educating Congress Members
  • Preventing bad policy decisions and destructive legislation and regulation
  • Encouraging open and clear dialogue about Captives

SIIA is focused on reducing onerous requirements such as those imposed by Notice 2016-66 and the receipt of IRS letter 6336 and has taken the following steps to address concerns:

  • SIIA has been in conversations with the White House
  • SIIA sent a letter to the IRS and Treasury about burdensome, costly, and ill-timed requests on March 30, 2020. Here is a link to the full letter.

The advocacy efforts of SIIA has led to the following accomplishments:

  • The IRS removed Captives taking the 831(b) election from their “Dirty Dozen” list (a compilation by the IRS of the programs that represent “The worst of the worst tax scams”). 2020 is the first time since 2014 that Captives were not included on the list.
  • 23 parties including SIIA filed an Amicus Brief recently in reference to the case before the US Supreme Court: CIC Services LLC v. IRS.  For more details, click here.

What You Can Do To Help

In an attempt to build upon recent successes, SIIA is asking Captive Owners to consider joining its Advocacy efforts by contacting Ryan Work to setup meetings with Members of Congress to share their stories.  Congress Members want to hear from their constituents, and who is better to educate government officials than those that are utilizing Captives for real risk mitigation in their Companies.  The IRS was under the assumption that many coverages written by Captives insure for risks that are not real; yet here we are in the middle of a pandemic and one of the only coverages responding are Contingent Business Interruption policies issued by Captives.

As Ryan stated during the webinar,

“Doing nothing invites risk and doing nothing in the Captive industry creates issues.  If we do not create the dialog, those in opposition to Captives will fill that silence, which could result in restrictions or worse.  Those in support of Captives must speak out to prevent the loudest voice from being the critics.”

Sandra L. Fenters is a member of Ryan Work’s SIIA Advocacy Committee for the last 3 years.  She has met with many legislators in an attempt to educate them about and advocate for Captives.  It is something Sandra and Capterra feel is necessary and important.  We would love to build our advocacy team with a focus on education so that Congress Members understand the need for Captives and do not simply base their viewpoint solely on what is portrayed by critics.

Although the goal is to educate and solve this problem, the reality is that this is an ongoing effort due to the turnover in Congress.  Alone, SIIA cannot reach out to all 450 Members of Congress, but with the help of Captive Owners, we can together build a narrative and reach many more.

If you are interested in telling your Company’s story and helping to educate Members of Congress on the need for Captives, please let us know and we will put you in contact with Ryan Work so that he can aid in setting up a meeting with a Member of Congress or a staffer.

Thank you for considering playing a key role in the future of Captives by aiding with Advocacy efforts.  We hope to work with you in this capacity in the near future.


What Prompted This Communication

The information above was reviewed in a recent webinar Capterra Risk Solutions, LLC participated in on Tuesday, July 21, 2020 titled SIIA Captive Owner Engagement & Policy Update presented by Ryan Work the Vice President of Government Relations for the Self-Insurance Institute of America, Inc. (SIIA).

In summary, the webinar covered the background of SIIA, their goals, approach, and recent activity, a timeline of the past 5 years as it relates to Captives, and an ask for Captive Owners to participate in advocacy and education efforts to engage Members of Congress.   If you would like to view the webinar, please let us know and we will obtain approval to share a link to the recording with you.

Delaware Captive Insurance Association 2014 Spring Forum Highlights

We attended the Delaware Captive Insurance Association Forum on May 12th and 13th in Wilmington, DE.  The event was well attended with 79 participants from many disciplines all working in the captive space: attorneys, actuaries, CPA’s, captive managers, and Delaware regulators including the Insurance Commissioner, Karen Weldin.  The forum offered a great opportunity to meet with several key players working with captives domiciled in Delaware.

Sandra was asked to present Tuesday morning and conducted a lively session regarding policy construction with Andrew Rennick, Esquire of Gordon, Fournaris & Mammarella, P.A.  We had an interesting session with Steve Kinion, the Delaware Director, Bureau of Captive and Financial Insurance Products, where he shared his views on the National Association of Insurance Commissioners’ (NAIC) move to change the definition of multi-state insurers which may adversely affect captives.  Steve also went over his proposed changes to Delaware regulations primarily affecting series captives, as well as providing new loan guidelines for all captives.

One of the participants of note was Chaz Lavelle of Bingham Greenebaum Doll, LLP.  Chaz was the Tax Counsel for two key taxpayer victories in captive insurance cases including the Humana Inc. v. Commissioner which decided the “brother-sister” issue regarding risk sharing and risk distribution.

Great forum and time well spent!

Captive Benchmarking

Released last week at the 2014 RIMS Annual meeting, the Marsh report contains a lot of interesting information regarding captives.  Some of the benchmarks included were:

  • 66% of the total captive count are single parent captives
  • Of the captives treated as insurance companies for tax purposes, 47% use a “brother/sister” approach, 42% use third party risk, and 11% use a hybrid of the two approaches.
  • Of the non-traditional coverages written in captives, crime insurance tops the writings, with medical stop loss or another layer of a self insured health plan also growing in popularity.

See the press release and article here:

“Majority of US-Owned Captives Not Generating Tax Benefits: Marsh”- Article written by Marsh on Tuesday, April 29, 2014, Article posted by The Wall Street Journal on Tuesday, April 29, 2014



And the full report:    “The Evolution of Captives: 50 Years Later” by Marsh USA published April 29, 2014:

Vermont Signs New Captive Insurance Legislation into Law

“Vermont’s New Captive Insurance Legislation Signed into Law; Changes Strengthen Vermont’s “Gold Standard” Captive Insurance Legislation”

Article posted by on Thursday, April 17, 2014

Press Release posted by Digital on Friday, April 18, 2014

Vermont has just enacted new legislation which creates a “dormant” status for captives. The dormant status provides a way for a captive that has ceased insurance operations to cost-effectively retain its license should it elect to resume operations in the future.  (Bill H.563 amending Title 8) – Lynn H. Desmone, Account Executive, Capterra Risk Solutions (4/25/2014)


Read more here:

“New Legislation has passed in the Vermont State Legislature updating the state’s captive law. The new law, which takes effect immediately, amends the reciprocal insurer section and creates a new “dormant status for captives.” – Montpelier, VT (PRWEB) April 17, 2014 (


View the press release on by clicking the link below:


To view “Bill H.563 amending Title 8” passed including amendments click on the following link:


What Doesn’t Belong in Your Small Captive

Last week, we attended (via Webinar) a presentation at the CICA International Conference, held in Arizona, entitled “Best Captive Practices for 831(b)s- Do Them Right or Don’t Do Them At All.

This presentation looked at small captives from the perspective of a captive manager, an actuary, an attorney, and a captive owner.  It was an interesting presentation covering many aspects of captive insurance companies and their structure including best practice guidelines.  While there were many topics worth sharing, one of the initial items discussed was what NOT to place in your small captive (may be appropriate in a larger captive, or a group captive):

  • Primary, working layers of easily accessible commercial coverages like general liability and auto liability;
  • High frequency coverages like workers compensation, auto physical damage; and
  • Long tail or primary coverages seen as inherently “risky” like medical malpractice.

What you are likely to want to place in your small captive are more “traditional,” low frequency risks that potentially have a high severity:

  • Weather related risks: flood, wind;
  • Pollution liability and clean-up; and
  • Excess or Wrap/DIC policies.

You’ll also want to consider including coverage for some more non-traditional risks (but be careful that these are not just “business risks”) including coverage that is not available at all in the traditional insurance market and currently self-insured.

Want to learn more?  Please give us a call, or send us a comment or question!

Captive Domiciles

Finally!  We’re feeling a thaw here in Pittsburgh and are ready to embrace spring!  While winter might be a time of hibernation for some, not here at Capterra Risk Solutions.  We were busy over the winter forming several new captives, three of which were organized in a relatively new domicile for us, Utah.  The Utah Captive Insurance Division was most helpful in getting these new captives up and running and the staff has been a real pleasure to work with.  We now have captives located in several domiciles, both onshore and offshore.

In addition to working with business owners to assess their fit for forming a captive, we’ve been working closely with the regulators in several domiciles, staying abreast of changes such as new filing requirements in Delaware and tightened regulations in Anguilla due to increased focus from the International Monetary Fund regarding all financial institutions domiciled there.  Each domicile has its own challenges and opportunities.  Several states have recently enacted new legislation making the organization of a new captive in a U.S. domicile an attractive option.

Is a captive insurance company a fit for you? As an additional risk management tool, a captive insurance company allows you, the business owner, to determine how much risk to retain, as well as insure risks that may be traditionally “uninsurable” or cost prohibitive.  Risks like warranty programs, loss of a key contract or key employee, these all fit well into a captive insurance company.

Want to learn more?  Please give us a call, or send us a comment or question!

Congratulations to Stefanie Cellitti

Stef's Photo - sized 2

We congratulate Stefanie Cellitti on her new position with Capterra Risk Solutions as the Assistant Controller. Stefanie was previously responsible for the day to day accounting functions of all captive insurance companies under the management of Capterra, and now Stefanie is responsible for the day to day internal accounting functions of Capterra.  Stefanie’s full bio can be viewed at

Welcome to Our Blog

Welcome to Our Blog – Added During Our Rebranding Process

Evaluating how our company presents itself to our customers and community is valuable and important.  Earlier this year (2013) we began an evaluation and promptly started a rebranding process to better define our company.  The culmination of this effort is our new name, logo, and website.

To begin this process, we contemplated and examined what our customers described made us unique and distinct.  After reflecting on what our customers shared, our business relationships and what makes them work, we rapidly concentrated on the following:

  • Our team members’ expertise in alternative risk transfer platforms
  • Our team members’ knowledge base and experience
  • Our team members’ expertise in Independent Risk Management & Consulting
  • Our team members’ outstanding customer service

We wanted to capture the essence of these specialties in our new name.

*Integrity is one of our Company’s most valued assets; it is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes.  The word “integrity” stems from the Latin adjective integer (whole, complete).  In order to present our company in a way that succinctly describes our attributes, such as integrity, we chose the name Capterra.

We are pleased to introduce:

 1)      Our New Name:                    Capterra Risk Solutions

 The new company name Capterra derives from a combination of the words Captive, from Captive Insurance, and Terra, meaning the planet earth and the vast landscape of alternative risk solutions.

 2)       Our New Logo:   Capterra_FullColor-01

 The logo is a globe shape due to the definition of Terra. It includes a “C” for Capterra embedded in the dark blue lines on the inner circle of the logo.

3)       Our New Website:      

 We hope you’ll find the website to be easy to navigate and informative.  The focus of the website is to educate the public on Captive Insurance and the many benefits of the Capterra Experience.  It provides visitors with insight on how they can take advantage of the benefits of forming a Captive Insurance Company domiciled either onshore or offshore.  Capterra can help businesses capture real profits by embracing a solid risk management program.

The website includes a blog as well as a page that visitors can sign up to receive the Company’s email newsletter and updates.  Visitors can easily request a free consultation directly on the home page or choose to follow Capterra on Facebook or LinkedIn by clicking on the icons.

The Capterra Risk Solutions team would appreciate you sharing thoughts and feedback regarding the new branding – name, logo, and website.  Please share your comments with our team in the comments section of this blog post.  Thank you.


*definition of Integrity from


Join us for “Capterra EmCap Program Webinar” on Wednesday, November 13th or Thursday, November 14th

Searching for affordable, robust health care for your employees?

Today’s health care market is complicated. Now there’s a solution that gives midsize employers more control over their health care costs. The Capterra EmCap program, a health benefits captive, provides midsize employers with the same financial tools used by large employers with self-funded health plans.

Available through Simpson McCrady Benefits, in partnership with Berkley Accident and Health, Capterra can provide greater control, stability, and transparency over your health care costs.


Title: Capterra EmCap Program Webinar

Dates: Wednesday, November 13th or Thursday, November 14th

Time: 10:30 a.m. to 11:30 a.m. EST


Space is limited.

To register, please call Capterra Risk Solutions at 412-802-2600 or send your name, email, and preferred date to

Join us for “Capterra EmCap Program Webinar” on Wednesday, October 30th or Thursday, October 31st

Facing unchartered waters with health care reform?

Today’s health care market is complicated. Now there’s a solution that gives midsize employers more control over their health care costs. The Capterra EmCap program, a health benefits captive, provides midsize employers with the same financial tools used by large employers with self-funded health plans.

Available through Simpson McCrady Benefits, in partnership with Berkley Accident and Health, Capterra can provide greater control, stability, and transparency over your health care costs.


Title: Capterra EmCap Program Webinar

Dates: Wednesday, October 30th or Thursday, October 31st

Time: 10:30 a.m. to 11:30 a.m. EST


Space is limited.

To register, please call Capterra Risk Solutions at 412-802-2600 or send your name, email, and preferred date to