On The Road Again…

Richie-NelsonVCIA is on the road again, coming to Boston on November 14 at the Seaport Hotel & Conference Center for our “world famous” VCIA Captive Road Show, where we preach the gospel of captive insurance in cities across the U.S. (and will even be presenting in Mexico City next year!)

The VCIA Road Show is an excellent chance to learn about captive insurance and enjoy a great reception afterwards, to connect with others in the industry.

The educational session will feature representatives from two captive programs, who will share their experiences.  Tracy Hassett, SPHR, is President and CEO of Educators Health, LLC where she played a key role in the launch of edHEALTH, a unique entity, a first of its kind consortium of colleges and universities with the mission of reducing health care costs while enhancing consumer knowledge of options, plan design, disease management and wellness programs. Gail Newman, Vice President of Risk Management for Bright Horizons Family Solutions is our second captive owner panelist. Gail’s program excels in providing best-in-class family-care solutions across North America, United Kingdom, Netherlands, and India. Gail is passionate about business process improvements and creating risk mitigation strategies that not only support healthy financials and the “right” insurance program, but also keep employees and clients of the business safe. With the inception of Bright Horizon’s captive (APEX) in 2017, the business has been able to realize better flexibility and financial health for their insurance program and innovate insurance coverage strategies that are unique to the business.

Others all-stars presenting that day will be:  Michael O’Malley, managing director for Strategic Risk Solutions; Dave Provost, Vermont’s Deputy Commissioner of Captive Insurance; and Ian Davis, Director of Financial Services for the State of Vermont.

If you are in the Boston area, I hope you will be able to join us! Click here for more information and to register.

Thank you very much, I look forward to hearing from you.

Rich Smith
VCIA President

It’s Your Reputation on the Line

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On Monday, August 19, a group of high-powered American executives, including seven of the large commercial insurers, published a statement on the role of shareholders in corporate governance that departs sharply from tradition.  The “Statement on the Purpose of a Corporation” put forth by the Business Roundtable asserts that corporations have greater obligations beyond generating profits for shareholders. In short, they are responsible for creating better lives for all their stakeholders.  Putting these parties first and treating them ethically is ultimately what keeps businesses going and the economy growing.

Shareholders have long been corporations’ top priority because disappointing them means withdrawal of their investment at best, and at worst, the potential for securities class action lawsuits. Businesses now operate in an environment of heightened reputation risk that has a tangible impact on income statements. Loss of customer loyalty and diminished brand value are real consequences of social irresponsibility, and these ultimately impact revenue and profit.  As important as the change in priority might be overall, it will add to the growing reputational risk profile of every organization.  That is one of the main reasons VCIA is hosting a webinar on reputational risk and how captive programs can help mitigate it, on October 23rd.

It can be said that reputation is a product of expectations. Often misunderstood and inadequately addressed, reputation risk is the peril of economic harm from leaving stakeholders disappointed and angry. Negative media and social media coverage are often a byproduct, amplifying that disappointment and anger. When reputational crises occur, they impact businesses commercially and financially, and their leadership personally. The August 2019 Business Roundtable declaration raises the stakes.

A captive program can be an effective vehicle for insuring reputational risk. A captive is in the unique position of being able to fund potential losses associated with stakeholder anger and disappointment, and by doing so signal to key stakeholders (employees, creditors & analysts, and regulators) that the company’s governance apparatus is very aware of the peril, and is confident that it is managing the risk well. And if the captive is at least partially reinsured in the open market, it then also demonstrates that an objective third-party has reviewed the company’s practices and is essentially “warrantying” the company’s governance.

So, join us on October 23rd for our webinar featuring Dr. Nir Kossovsky, CEO of Steel City Re, a leading source of integrated reputation risk mitigation solutions and insurances, and Machua Millett, Chief Innovation Officer for FINPRO U.S. and the General Partner Liability Product Leader at Marsh.  Ably moderated by Maigh Wright, an associate actuary with Milliman, this webinar is guaranteed to burnish your reputation!

Thank you very much, and I look forward to hearing from you.

Rich Smith
VCIA President

10-Day Countdown

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Just ten days until we open Burlington, Vermont to all you captive insurance professionals! If you have not already done so, please make plans to join us for a week of wonderful education, networking and friendship.

Here is just a smattering of some of the captive owners who will be presenting this year:

  • Andrew Baillie, AES of Global Insurance Company
  • Sean Barnes of United Educators
  • Julie Bordo of PCH Mutual Insurance Co., Inc., a RRG
  • Tracy Hassett of Educators Health Insurance Exchange of New England
  • Tim Herr of Recreation Risk Retention Group
  • Karen Hsi of the University of California
  • Jan Klodowski of Agri-Services Agency LLC & Agrisurance Inc.
  • Troy LePage of HAI Group
  • Heather McClure of Oklahoma University Medical
  • Bill Murray of Church Insurance
  • Tim Padovese of Ophthalmic Mutual Insurance Company (OMIC)
  • Joshua Reding of Life Time Captive Insurance Company
  • Paul Smith of National Insurance and Indemnity Corporation

I hope you all can join us! Click here to register for the VCIA Conference today.

Thank you all very much, and I look forward to hearing from you!

Rich Smith

From Early Bird to Angry Bird

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For all you procrastinators out there (and I count myself as one of the best) listen up! VCIA’s Annual Conference “early bird” rates are about to expire on June 30th. That means, of course, you will be paying more to learn and network with 1100 captive professionals from around the US and the world. And none of us like doing that.

Don’t take my word on it – look, here it is in black and white:

Registration Type

Early Price

Late Price

Full Pass: Member $750 $825
Full Pass: Non-member $1300 $1380
Networking: Member $465 $515
Networking: Non-member $890 $940

So, before the early bird changes into an angry bird, get on it! Click here to register today.

Thank you all very much, and I look forward to hearing from you!

Rich Smith
VCIA President

Cool Captives from Vermont

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I just returned from Chicago where I was a guest of the folks from Strategic Risk Solutions at their annual client symposium. It was a great 1 ½ days of education and networking with the captives, service providers and staff of SRS (many Vermonters, of course!).

I was asked to speak on a panel with regulators from a variety of captive domiciles on the way Vermont regulates captives, specifically the examination process. Hardly my expertise, but as you all know, I am always game!

At the lunch on Wednesday, SRS President & CEO Brady Young recognized three of their clients for the innovation they all employed in their captives. All three were Vermont captives naturally! They were Agrisurance Inc., whose parent company is Dairy Farmers of America (DFA), the largest co-op in the country and fourth largest worldwide; Maple Red Insurance Company, captive for Turner Construction, one of the largest construction management companies in the United States; and ProMutual Solutions/Axial Benefits Group cell programs. 

Congratulations to you all, and congratulations to SRS for a very successful event!

Thank you all very much, and I look forward to hearing from you!

Rich Smith
VCIA President

Registration Open

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May 1st means only one thing around Vermont (well, maybe our particular piece of Vermont): registration for VCIA’s Annual Conference is now open!

With 1100 attendees joining us last year, the VCIA conference is the largest and most comprehensive captive insurance conference in the United States. Nearly 30 educational sessions will cover topics from those new to captive insurance and industry veterans.

A couple of new features this year include Captive Immersion which takes place on Monday, August 5th.  Captive Immersion will educate those new to the industry on the key services of captives, in a condensed time frame. Includes lunch, an afternoon of education, and a cocktail networking reception.

Also new this year are Learning Circles. Sign up for a Learning Circle to connect with 6 – 8 other attendees and a conference ambassador, where you’ll make connections, get acclimated to the event, and learn from each other!

Our two keynote speakers are NASA Astronaut Mike Massimino and Laura Drabik, Group Vice President of Business Innovation at Guidewire Software.  Mike will share his firsthand account of his missions to the Hubble Space Telescope and tell incredible stories of what it’s like to have one of the most dangerous jobs in the world.  And Laura will provide keen insight on disruption, tech and innovation in the insurance industry. Her passion for insurance is rooted in purpose and her inspiring talk on August 6th is not to be missed!

Come join us this August to learn about captive insurance from the industry experts. Explore trends and strategies to use in your organization, collaborate with others, and earn credit from our thought-provoking sessions!

Thank you all very much, and I look forward to hearing from you!

Rich Smith
VCIA President

Philadelphia Freedom!

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Heading to Philadelphia next Tuesday for one of VCIA’s famous Road Shows where we dazzle the crowds with an overview of the captive insurance industry. The afternoon includes two educational seminars featuring captive owners and captive professional panelists who share their companies’ experiences in forming and operating a Vermont captive. The afternoon wraps up with a networking reception for all.

Held at the Le Meridien Philadelphia hotel on 1421 Arch Street in downtown Philadelphia, the first half of the afternoon will focus on the basics of captive insurance companies; the reasons for formation, the feasibility process and key issues in putting a successful captive program together. In the second half, two distinguished captive owners from two different types of captive insurance companies will share their experiences and why and how they created their captive programs.

Gary Langsdale serves as university risk officer for The Pennsylvania State University with responsibility for Enterprise Risk Management including operational, hazard, and strategic risks. Gary is president of the university’s captive insurance company, Nittany Insurance Company. He has over 40 years of experience in the insurance and risk management field, has co-authored white papers for the University Risk Management and Insurance Association (URMIA), and participated in the 2010 development of the ASME standard on risk assessment for institutions of higher education. In 2009, he was recognized by Business Insurance magazine as a member of their Risk Management Honor Roll, and in 2016 he received URMIA’s highest honor, the “Distinguished Risk Manager” designation. Gary will share his experience with us.

While serving as CEO and COO of Resource Partners over the past 15 years, Phil Leaman, our second captive owner panelist, helped direct the launch of three Vermont based captives providing for the liability, workers compensation, medical benefits and risk management needs of its faith-based, not for profit, aging services and health & human services member organizations. During this time Phil was part of the organizational team and served as a founding board member of the Center for Aging Services Risk Management which confers the professional designation of Certified Professional in Aging Services Risk Management (CPASRM) to individuals who complete its educational program in the discipline of aging services risk management. Phil serves on the VCIA Legislative Committee.

It’s not too late to register to hear from these fine panelists! Click here for more info.

Thank you very much, and I look forward to hearing from you!

Rich Smith
VCIA President