We took our “World Famous Road Show” to Boston earlier this week (well, actually Cambridge) which always gives us a great opportunity to provide a mini “Captives 101” to those both interested in the industry and those currently in the industry looking for some hand’s on education while networking with peers. Boston is a good market for us as it is a relatively short drive and it’s chock full of great people and businesses.
Our first panel consisted of Andy Sargeant from USA Risk and the usual team of Dave Provost, Vermont’s chief captive insurance regulator, and Dan Towle, director of financial services, for those of you who don’t know them. Dave always has a slide with some connection between Vermont and the places where we host our Road Shows. On this occasion, he showed a number of prominent Boston-area buildings that use Vermont granite and a picture of Calvin Coolidge, who was Governor of Massachusetts before becoming President: Vermont’s gift to U.S. history. Of course, Silent Cal (as he was known), as a pro-business President, would be proud of Vermont’s captive insurance success story!
On our second panel, we had three captive owners with very different organizations and captive histories. Michael Crasnick is Vice President Underwriting of Elm Insurance Company, the wholly-owned single parent captive of GE. Formed in 1983 as Vermont’s 12th licensed captive (we are now past 1000!) Elm provides highly customized, cost effective, and expert claims handling services. GE has effectively used Elm over the years to underwrite a number of specialty lines policies, as well as facultative reinsurance contracts.
Ellen Varney, CFO of Controlled Risk Insurance Company of VT (CRICO), a risk retention group comprised of Harvard Medical School and a number of Boston-area hospitals and their affiliates, was formed in response to the medical professional liability crisis. Its mission is to provide medical malpractice insurance to their members and assist them in delivering the safest health care in the world. Ellen’s description on the way CRICO has improved safety in their member hospitals over the past 20 years through the reinvestment in long-term loss prevention and patient safety was astounding.
And Dan Richards is CEO of Global Rescue LLC, which formed a captive in Vermont about five years ago. They have provided travel risk and crisis management services to enterprises and consumers since 2004, getting people and institutions out of places or situations around the world 24/7. Their clients include everyone from Deutsche Bank, to the U.S. Ski Team, to National Geographic. They performed over 1200 operations in 2013 alone!
Pretty cool stories from a very diverse group of captives. Who said captive insurance was boring! Thank you all very much and I look forward to hearing from you!