Earlier this month, I wrote about why it’s critical for your captive insurance company board to conduct self-assessments of their performance. Equally important is the relationship that exists between the CEO and the board of directors.
For many captive insurance companies, this dynamic may be different but even more critical. This difference is the result of captives outsourcing the management of the insurer to a captive management company. In many instances, the captive manager fulfills the role of CEO, although that title may not be used.
The purpose of this article is to look at what constitutes the essential elements of a good CEO/board relationship and how these elements can be adapted to fit the management model employed by a large number of captives.
One of the key aspects of creating a high-functioning relationship between the board and the CEO is a clear delineation of roles and responsibilities. While a multitude of job descriptions exists for the board of directors, in my view, here are the salient points.