The Edge of Risk Podcast by IRMI

In this episode of The Edge of Risk podcast by IRMI, host Joel Appelbaum speaks with Jim DeVoe-Talluto, assistant director of captive insurance at the Vermont Department of Financial Regulation, about what organizations need to know when applying to form a captive insurance company. Drawing on more than 2 decades of regulatory experience, Mr. DeVoe-Talluto outlines the steps applicants should expect, the most common barriers to approval, and the importance of a strong feasibility study and experienced advisers. Mr. DeVoe-Talluto also discusses Vermont's regulatory philosophy and why early planning, clarity of purpose, and strong executive buy-in significantly improve the chance of success. Whether you're exploring a first-time captive or seeking insight into regulator expectations in one of the world's largest captive domiciles, this conversation delivers timely, practical guidance directly from the source.

Steve McElhiney, partner, Captives and Alternative Risk Transfer Solutions, Augment Risk, divulges both the rising popularity, as well as some of the misconceptions, of the use of captive insurance in agriculture, in this 26-minute episode of The Edge of Risk Podcast by IRMI.

Hear Mr. McElhiney's thoughts on how parametric insurance and captive insurance can go hand in hand.

Artificial intelligence (AI) has become an increasingly important topic across insurance, but its implications for captive insurance and actuarial work are still taking shape. In this episode of The Edge of Risk podcast by IRMI, Steven Abel and Jason Abril of Oliver Wyman share an actuarial and technology-driven perspective on how AI is influencing insurance analytics, data governance, and risk decision-making. The discussion explores how machine learning has long been part of actuarial toolkits, while newer AI technologies are accelerating workflow automation, data enrichment, and analytical insight generation.

The conversation also examines how captives differ from commercial insurers in their AI use cases, particularly given differences in scale, mission, and access to actuarial resources. Mr. Abel and Mr. Abril address transparency concerns around AI models, emphasizing governance, documentation, and human oversight. Looking ahead, they outline why AI literacy—rather than deep technical specialization—may become a critical skill for actuaries and captive professionals as advanced analytics continue to reshape risk financing strategies.

Natural disasters and weather-related events continue to dominate headlines, with their frequency and severity increasing year over year. The Edge of Risk Podcast by IRMI welcomes Angela Skow, vice president and head of Large and Complex Construction at CNA, to discuss how the construction industry strengthens communities after natural disasters. In this 16-and-a-half-minute episode, Ms. Skow identifies short- and long-term challenges the construction industry faces with weather-related events, such as labor and environmental considerations, and highlights the importance of integrating climate-adaptive materials with efficient designs to reduce future risk exposures. Listen in and learn more as she stresses the importance of utilizing the latest technology measures, including drones and climate-resilient building materials, to further maintain insurability for construction risks.

Elise Farnham, president of Illumine Consulting, explains hedging in agriculture. In this 14-minute episode of The Edge of Risk Podcast by IRMI, the daughter of a Kansas wheat farmer provides real-life examples of how farmers hedge commodities as part of their overall risk management strategy.

Consider this a teaser for what will be an enormously insightful session at the 2026 IRMI Emmett J Vaughan Agribusiness Conference. Click here to be notified when Conference registration opens and be eligible for the Early Bird discount.

The Edge of Risk Podcast by IRMI welcomes Theresa Guertin, partner at Saxe Doernberger & Vita, who was a speaker at the 2025 IRMI Construction Risk Conference in Indianapolis. Listen in for an informative discussion on coverage claims, contracts, and litigation strategy. In this 17-minute podcast episode, Ms. Guertin highlights excellent examples of policy language trends, sleeper risks, and red flags in construction insurance. She also shares her expert opinion on case law that may have a ripple effect on coverage litigation and provides highly applicable examples of best practices for construction risk transfer processes.

Letters of credit remain the most widely used form of collateral in captive insurance programs, valued for their reliability, simplicity, and universal acceptance by fronting insurers and regulators. In this episode of The Edge of Risk Podcast by IRMI, host Joel Appelbaum speaks with Marty Ellis of Comerica Bank about how letters of credit function behind the scenes, from application through draw procedures, and why features such as evergreen clauses and irrevocability are central to maintaining confidence on all sides of a captive program. The discussion also examines how letters of credit compare with trust accounts and cash collateral in terms of cost, liquidity, and investment flexibility. Special attention is given to how group captives use back-to-back letter of credit structures and how banking regulations may influence future pricing and collateral requirements. Together, these insights provide a practical look at why letters of credit continue to anchor collateral strategies in the captive insurance market.

In this episode of The Edge of Risk Podcast by IRMI, host Joel Appelbaum speaks with Austin Griffith, senior vice president at Risk Management Advisors, for an in-depth discussion on captive insurance domicile selection. Mr. Griffith outlines the core considerations that shape domicile strategy, including where risks are located, the types of policies being written, premium tax implications, regulatory environments, and the logistical realities of board meetings and travel. He also emphasizes the operational importance of domicile service levels, especially when captives need timely responses to dividend requests or coverage changes.

Mr. Griffith further examines the growing trend toward home state domiciling, explaining when it can be advantageous and when limitations in state legislation or regulatory infrastructure may require organizations to look elsewhere. The episode also addresses federal and state tax considerations, procurement tax, misconceptions about "right or wrong" domiciles, and the role advisers play when working across numerous jurisdictions. Mr. Griffith closes by looking ahead at an increasingly competitive landscape as more states build out captive insurance legislation and regulatory capacity.

In this episode of The Edge of Risk Podcast by IRMI, Joel Appelbaum speaks with Derek Freihaut, principal and consulting actuary at Pinnacle Actuarial Resources, for a detailed discussion on how captive insurance companies evaluate risk transfer and risk distribution. Drawing on Pinnacle's published research—including its case study on expected adverse deviation (EAD)—Mr. Freihaut explains how actuaries use objective tools to measure distribution, identify downside exposure, and document insurance characterization for regulatory and tax purposes. The conversation also explores the role of expected reinsurer deficit (ERD) in risk transfer testing, the impact of quota share versus excess-of-loss reinsurance structures, and how captives can align retentions, limits, and coverage mix with risk appetite. Mr. Freihaut shares practical examples of how EAD modeling informs program design, capital planning, and emerging-coverage decisions—giving captive owners a clearer view of how different structures influence long-term stability and performance.

Recorded live at the 2025 IRMI Emmett J Vaughan Agribusiness Conference (AgriCon) Central in Des Moines, this 9-minute episode of The Edge of Risk podcast by IRMI features a Snap Talk with Marnye Langer, president and CEO of The Langer Group. Ms. Langer gives us a sneak preview of what's in store for you at the 2026 AgriCon, August 31–September 2, in Nashville, Tennessee. Horse insurance is becoming increasingly complicated. Luckily, we have experts like Ms. Langer to keep us informed about changes.