Happy Holidays and See You in 2020

church street christmas

Season’s Greetings and Happy Holidays to all of the VCIA family! It was another great year for captives in Vermont, and next year portends to be even better for the industry as a whole.

As I have talked to many of VCIA’s members in the course of the past month or so, “busy” seems to be the word that encapsulates the tone. I think that has been due to two main factors: the increasing sophistication of risk managers in smaller and medium-sized organizations, and the beginnings of a hardening insurance marketplace.

Vermont is set to add another 20+ captives to its stable of over 1000 licenses by year’s end, notwithstanding the competition, due in large part to Dave Provost and his team at DFR’s continued steadfast regulation, Ian Davis’ doggedness in pursuing captive leads, and captive service providers, who continue to recognize Vermont as the premier captive insurance domicile! Overall VCIA membership has increased 2% this year with 446 member organizations thanks to Janice Valgoi and her tireless work in adding to our roles.

I want to say thank you to VCIA’s Board of Directors for all their support and guidance over the past year to the association. I want to especially thank Wilda Seymour of Franklin Casualty Insurance Company RRG for her contribution as board chair starting in October of 2018, and welcome back Jan Klodowski of Agrisurance Inc. as our chair as of this past October.  Longtime captive expert attorney extraordinaire, Stephanie Mapes of Paul Frank + Collins, came on as our vice-chair.  Many thanks to Andrew Baillie of AES Global Insurance Company, independent consultant Donna Blair, Lawrence Cook of Sedgwick, Dennis Silvia of Cedar Consulting, Anne Marie Towle of Hylant, and Derick White of SRS. And on behalf of the staff, I would also like to welcome Tracy Hassett of EdHealth and Jason Palmer of Willis Towers Watson to the board.

We continue our strong focus on events and on legislative and regulatory issues on behalf of our members. Many thanks to Jim McIntyre, and his partner Chrys Lemon, in Washington and Jamie Feehan in Vermont for their wonderful service to VCIA.   And my great thanks to the VCIA staff! Without their hard work, smarts and enthusiasm, we would not be able to accomplish any of the wonderful things we do for our members.  Thank you to Diane Leach, Elizabeth Halpern, Peggy Companion, Janice Valgoi, Dave Rapuano and Megan Precourt – you are all terrific!

Most of all, thank you for all your support and another great year!

Rich Smith
VCIA President

Mixy Business

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Many thanks to all you who joined us Wednesday night for VCIA’s annual Holiday Mixer. We had around 120 of nearest and dearest friends attend at the Hilton taking time to greet and socialize with fellow VCIA members on a cold and ultimately snowy Vermont evening.

Many thanks to our sponsors of the event: our friends at Crowe right up the street, and the folks of NAMIC Insurance Solutions (NAMICO) who came all the way from Indianapolis! Tim Sullivan, Kristen Strasser, and Ted Doughman braved the “friendly” skies to join us.  It is one of my favorite nights of the year, when friends come together with no agenda except to enjoy each other’s company as we head into the holiday season.

I also want to congratulate David Guerino as SVP & Managing Director of KeyState Captive Management.  Dave was there with some of his fellow KeyState colleagues as well, Jeff Vigne and Alicia Huskes. KeyState is a relatively new VCIA member and just announced plans to establish an office in Burlington, Vermont in early 2020.

Thank you again and I look forward to hearing from you!

Rich Smith
VCIA President

 

Happy Holidays and See You in 2018

church

I just wanted to wish all of you Happy Holidays as we head out of 2017 and into 2018. It’s been another busy years in captives, that included a horrific hurricane season, the decision of the Avrahami case on 831(b)s, the specter of continued cyber security issues with the hacking of Equifax (among others), and the soon-to-be-passed Tax Reform bill – all of which impact our industry.

That being said, captive insurance is growing and remains a robust part of the world’s risk management sector. Vermont broke through the 1000 captive license mark and looks to add around 25 new captives before year’s end. With challenges and opportunities that lie ahead such as healthcare, drones, (more) cyber risk, and AI (artificial intelligence – get used to it), captives will show how entrepreneurial and innovative our industry can be!

Thank you all for another great year and Happy New Year!

Rich Smith
VCIA President

A Nice Little Holiday Gift from Congress

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As reported by Business Insurance on December 13th, the House Financial Services Committee adopted legislation that aims to preserve the U.S. state-based system of insurance regulation and gives Congress greater oversight and transparency on international insurance standard negotiations.

As beneficiaries of the strong, state-based insurance regulatory framework, the captive insurance industry applauds the goal of this legislation. The bill was introduced in response to concerns expressed about the covered agreement signed by the United States and the European Union to address the U.S. lack of equivalency related to the bloc’s Solvency II directive for the insurance industry. Although we supported the covered agreement in terms of trying to create parity between jurisdictions, the NAIC objected to what they believe to be a lack of transparency and consultation with state regulators on the issue.

As reported in BI, the bill states that entities representing the United States may not agree to insurance-related international agreements unless they are consistent with and recognize existing federal and state law, particularly on the regulation of insurance. U.S. federal entities participating in negotiations would be required to coordinate and consult with state insurance commissioners, according to the bill.

Whether this bill gets enough immediate traction to pass in the next year remains to be seen. I think it does bode well that Congress reiterate the near supremacy in states regulating insurance (I say “near supremacy” because Congress can always change its mind!).

Thank you and I look forward to hearing from you.

Rich Smith
VCIA President

It’s a Wrap

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You gotta’ believe… that Santa Clause has a captive. I mean, just look at all his exposures worldwide. You got workers comp (oy, the elves!), stop-loss (again those pesky elves), liability (its icy up there you know and not everyone has a welcoming chimney), product warranty (they don’t build them like they used to), and throw in a little weather related cat bond, and you have the full boat (or sleigh as it might be).

And, of course, where else would he domicile Rudolf Red Nose Insurance, but in the domicile that most resembles his organization – Vermont. Efficient, honest, professional, and of course, cold this time of year.

Thank you all very much, and I hope you all have Happy Holidays and a wonderful New Year – see you in 2017!

Rich Smith
VCIA President