The Edge of Risk Podcast by IRMI

In this episode of The Edge of Risk Podcast by IRMI, host Joel Appelbaum speaks with Donny Tong, senior vice president at Truist Bank, about the role of reinsurance trusts—also referred to as "collateral" trusts—in captive insurance programs. The discussion explores how these trust structures function as collateral mechanisms between captives, fronting insurers, and reinsurers, including the operational mechanics behind trust agreements, eligible assets, withdrawal rights, and trustee responsibilities. Mr. Tong explains why many fronting insurers increasingly favor trust arrangements over letters of credit due to their operational simplicity, streamlined administration, and ability to provide ongoing visibility into collateral assets.

The conversation also examines how reinsurance trusts compare with other collateral options such as letters of credit and funds withheld arrangements. Topics include investment flexibility within trust accounts, liquidity considerations, balance sheet treatment, multibeneficiary and multicell trust structures, and the growing demand for master trust frameworks. Mr. Tong also shares perspectives on how market conditions, liquidity pressures, and rising letter-of-credit costs may continue driving adoption of collateral trusts across the captive insurance industry in the years ahead.

As climate change drives more severe and unpredictable weather, construction projects face costly delays and other risks. This month, The Edge of Risk Podcast by IRMI is pleased to feature Rose Hall, founder and CEO at RH Business Ventures, LLC. Listen in as Ms. Hall discusses how the application of noncatastrophic parametric weather insurance can be utilized to help contractors and project owners manage climate-related risks that do not trigger other policies. This talk was originally presented as a snap talk at the 2025 IRMI Construction Risk Conference.

Recorded live at the Captive Insurance Companies Association 2026 International Conference, this episode of The Edge of Risk Podcast by IRMI features Kristen Lawler discussing one of the most closely watched captive insurance tax decisions in recent years: the 2025 CFM Insurance Tax Court memorandum opinion. Drawing from her recent article in IRMI's publication Captive Insurance Company Reports, Ms. Lawler explains how the case highlights the growing importance of operational discipline, governance, documentation, pricing support, and claims handling in determining whether a captive arrangement qualifies as insurance for federal tax purposes.

The discussion explores the "commonly accepted notions" prong of the four-part insurance test and why it has become an increasingly significant focus of Internal Revenue Service scrutiny and Tax Court analysis. Ms. Lawler examines how the court evaluated risk distribution, premium practices, policy issuance, and state licensure issues under the McCarran-Ferguson framework, while also outlining practical questions captive owners should be asking their advisers today.

The episode offers timely insight for captive owners, tax professionals, actuaries, and risk managers seeking to better understand how operational rigor and economic substance continue to shape the captive insurance landscape.

Recorded live at the Captive Insurance Companies Association 2026 International Conference, this episode of The Edge of Risk Podcast by IRMI explores how artificial intelligence (AI) is moving beyond industry hype and into practical application within captive insurance programs. Joel Appelbaum is joined by Steven Bauman of AXA XL to examine where AI is already delivering measurable value—from underwriting support and claims analytics to operational efficiency and reporting enhancements—while also addressing the critical importance of data readiness and governance.

The discussion also expands into emerging risks, including the distinction between autonomous vehicles and broader autonomous mobility systems, and how these evolving exposures may reshape captive structures, capital strategies, and risk retention approaches. Mr. Bauman highlights the role of captives as incubators for emerging risks, particularly in environments where loss data is limited, and discusses how fronting insurers and regulatory considerations may evolve alongside these technologies.

This episode of The Edge of Risk Podcast by IRMI explores the fast-moving world of maritime war risk insurance, from the Strait of Hormuz to market capacity, cancellation, and coverage gaps across hull, liability, and cargo. Featuring Steven Weiss, president and chief underwriting officer of Incarnation Specialty Underwriters, the conversation delivers critical insights for insurance professionals dealing with global transportation and geopolitical risk.

Recorded live at the Captive Insurance Companies Association Conference, this episode of The Edge of Risk Podcast by IRMI features Victoria Fimea, chief captive analyst with the Arizona Department of Insurance and Financial Institutions. Ms. Fimea discusses the continued growth of Arizona's captive insurance program, emphasizing the state's measured, quality-driven approach and its collaborative ecosystem of regulators and service providers.

The conversation explores trends in captive formation, including the rise of first-time owners and evolving use cases as captives become more integrated into broader enterprise strategy. Ms. Fimea also outlines what regulators look for in strong business plans, common areas where applicants underestimate governance and operational requirements, and the importance of communication, compliance, and experienced advisers. She further shares how Arizona balances accessibility with analytical rigor and what the future may hold for the domicile's continued development.

Recorded live at the Captive Insurance Companies Association Conference, this episode of The Edge of Risk Podcast by IRMI features Stephen Taylor, director of the Bureau of Captive and Financial Insurance Products at the Delaware Department of Insurance. Mr. Taylor discusses Delaware's regulatory philosophy, highlighting a balance of flexibility, efficiency, and innovation supported by a collaborative and responsive oversight framework designed to meet evolving business needs.

The conversation explores how regulators distinguish between thoughtful and reactive captive evolution, with a focus on governance, capital adequacy, and alignment with enterprise risk strategy. Mr. Taylor outlines key regulatory priorities, including solvency oversight, compliance with approved plans of operation, and additional scrutiny for certain captive structures. He also provides practical guidance on effective communication with regulators and emphasizes the importance of deliberate planning, strong governance frameworks, and consistency between strategy and execution.

When the pressure's on, will you make the right call? In this 16-minute episode of The Edge of Risk Podcast by IRMI, Elise Farnham previews her IRMI Emmett J Vaughan Agribusiness Conference (AgriCon) ethics sessions and shares why moral courage isn't optional—it's essential. You'll want to hear what Ms. Farnham, president of Illumine Consulting, will present in her three-part "Ethical Decision-Making" series and make plans to attend this year's IRMI AgriCon, scheduled for August 31–September 2, in Nashville, Tennessee.

Recorded live at the Captive Insurance Companies Association Conference, this episode of The Edge of Risk Podcast by IRMI features Christine Brown, deputy commissioner of the Captive Insurance Division at the Vermont Department of Financial Regulation. Ms. Brown shares her perspective on regulating within one of the most established captive domiciles globally, emphasizing Vermont's long-standing focus on solvency, transparency, and maintaining the integrity of the captive insurance industry.

The discussion explores how regulators evaluate expansion into new lines of coverage, the importance of early communication with regulators, and the critical role of governance in captive success Ms. Brown also outlines key areas of focus for captive owners in today's environment, including evolving risk exposures, policy exclusions, and claims handling practices, while offering insight into Vermont's continued leadership and collaborative role as the captive landscape grows more competitive.

Recorded live at the 2025 IRMI Construction Risk Conference (CRC) in Indianapolis, this 17-minute episode of The Edge of Risk Podcast by IRMI features a Snap Talk with David Tibbetts, chief safety officer at Highwire. Mr. Tibbetts discusses why tracking events with the potential to result in a serious injury or fatality (SIF) provides better insight into safety performance than traditional metrics, such as total recordable incident rate (TRIR). Listen in to learn more about the importance of safety culture and identifying the highest-risk work on construction sites.