Erik Johnson

The Captive Insurance Companies Act, formerly Bill 76, was introduced by the government of Alberta in October 2021 and passed in December 2021. The act enables entities to establish their own insurance company, called a captive insurer. A captive insurance company is created and owned by a non-insurance parent for providing insurance coverage
for the parent company’s exposures and/or those of associated parties.

This paper discusses the regulatory policy elements that serve as the… Show more

The Captive Insurance Companies Act, formerly Bill 76, was introduced by the government of Alberta in October 2021 and passed in December 2021. The act enables entities to establish their own insurance company, called a captive insurer. A captive insurance company is created and owned by a non-insurance parent for providing insurance coverage
for the parent company’s exposures and/or those of associated parties.

This paper discusses the regulatory policy elements that serve as the key foundations for the captive insurance market in major captive insurance jurisdictions, best practices for captive insurance regulation, and key elements of a best-of-breed regulatory regime that is needed in Alberta to be a competitive captive jurisdiction. We examine regulation and policy elements in leading captive insurance jurisdictions and identify policies that have been implemented to stimulate growth of captive insurance markets.

To foster an environment for a robust captive insurance market, regulation must ensure fast and predictable licensing and setup (or redomiciliation), be cost neutral, and have simple, reasonable requirements for capital, solvency, and reporting. It is equally important that Alberta’s captive regulator have the mindset of a captive regulator, meaning that it appreciates the distinction between regulating traditional insurers versus captives, has
a willingness to work with the captive industry, and is responsive to regulatory changes taking place in the competitive captive marketplace. Show less

Victor Syndicate 2288 is a virtual syndicate, which means it is a Lloyd’s syndicate (think (re)insurer), but that it does not have a traditional ‘underwriting box’ in the Lloyd’s building, where brokers would have traditionally queued to see an underwriter. 2288 is the syndicate number, which all Lloyd’s syndicates have, with 22 representing Victor (the 22nd letter in the alphabet) and 88 representing two lucky eights signifying wealth and luck.

By design, it does not have a large team… Show more

Victor Syndicate 2288 is a virtual syndicate, which means it is a Lloyd’s syndicate (think (re)insurer), but that it does not have a traditional ‘underwriting box’ in the Lloyd’s building, where brokers would have traditionally queued to see an underwriter. 2288 is the syndicate number, which all Lloyd’s syndicates have, with 22 representing Victor (the 22nd letter in the alphabet) and 88 representing two lucky eights signifying wealth and luck.

By design, it does not have a large team of underwriters, claims experts, actuaries and management in London. In London, it is me and the active underwriter (think chief underwriting officer). We are supported by a geographically dispersed Victor team with actuarial in Ottawa, Canada, exposure management in Boulder, Colorado, and reinsurance and finance from New York. Working collaboratively with subject matter
experts, embedded in Victor but located around the world, enables Syndicate 2288 to cost-effectively leverage existing Victor capabilities and support local build-out of capabilities for the benefit of Syndicate 2288 and Victor overall. Show less

In the fourth in our series of diversity and inclusion (D&I) articles, we look at how to measure the impact of D&I initiatives.

The mantra of “what gets measured gets done” applies, like any other business programme. With a range of statistics and outcomes to consider, many businesses struggle with how best to measure the impact and realise the benefits.

How to implement diversity and inclusion (D&I) policies supporting culture change within organisations and specifically, the claims team.

To effectively implement D&I policies and effect culture change, businesses need to ensure that they have the correct team/individuals responsible and accountable for the work; a consistent and clear communication plan; training and development; inclusive talent management; and measurable objectives. This work needs to be managed much like other… Show more

How to implement diversity and inclusion (D&I) policies supporting culture change within organisations and specifically, the claims team.

To effectively implement D&I policies and effect culture change, businesses need to ensure that they have the correct team/individuals responsible and accountable for the work; a consistent and clear communication plan; training and development; inclusive talent management; and measurable objectives. This work needs to be managed much like other business critical change programmes. Show less

In the second in our series of diversity and inclusion (D&I) articles, we look at how to create inclusive corporate policies that will support culture change within organisations and specifically, the claims team.

HR is generally tasked with managing and implementing a D&I policy, although it is driven from the top within an organisation and should be supported at every level. Within the claims area, this should be sponsored and driven by the Claims Director/Head of Claims and all their… Show more

In the second in our series of diversity and inclusion (D&I) articles, we look at how to create inclusive corporate policies that will support culture change within organisations and specifically, the claims team.

HR is generally tasked with managing and implementing a D&I policy, although it is driven from the top within an organisation and should be supported at every level. Within the claims area, this should be sponsored and driven by the Claims Director/Head of Claims and all their direct reports will be tasked with embedding policy within the team. Show less

In this first in a series of D&I focused articles we start with an introduction to what diversity and inclusion mean, an overview of the relevant UK legislative framework, and what this means for claims professionals.

Diversity and inclusion walks a line between relevance and keeping people on board, says Erik Johnson, and the (re)insurance industry needs to push harder to maintain progress.

To be successful in practice, a diversity and inclusion strategy must be developed with
both top level support and grassroots initiatives.

General insurers are operating in a challenging market in terms of their ability to generate sufficient returns for investors. Claims indemnity spend is the largest component of an insurer's expense base. Focusing on reducing this expenditure could offer material rewards to insurers with an associated impact upon investor returns.

In this article Erik Johnson and Jonathan West explore whether insurers can reduce any unnecessary claims spend - claims leakage – without impairing… Show more

General insurers are operating in a challenging market in terms of their ability to generate sufficient returns for investors. Claims indemnity spend is the largest component of an insurer's expense base. Focusing on reducing this expenditure could offer material rewards to insurers with an associated impact upon investor returns.

In this article Erik Johnson and Jonathan West explore whether insurers can reduce any unnecessary claims spend - claims leakage – without impairing policyholder confidence. Performing a closed claim file review quantifies leakage at an overall level and then analyses the reasons into component parts. Once identified, appropriate actions can be taken to prioritise future process change. In many cases, insurers will be able to make quick wins to capitalise from such a review and improve profitability. Show less

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