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

VCIA Legislative Day – Cyber-up!

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As we all know, cybersecurity is one of the main issues facing society today. From data breaches that expose personal information to malware that can infect computer systems, in our growing IOT (internet of everything) world it’s the problem of the day. The insurance industry, including captives, have focused on cybersecurity for some time now. Both to provide their clients with the proper mitigation policies and to protect their own data systems, our industry continues to be in the forefront.

Who would have figured that in our small state, Vermont hosts one of the top cybersecurity institutions in the nation! Located in Northfield, Vermont (just south of our State’s capital, Montpelier) Norwich University hosts the NU Applied Research Institutes (NUARI).  NUARI was federally chartered in 2002 to address cyber incident management challenges through research, training programs and technology development and has been a global leader for more than a decade in developing cyber war gaming, distributed learning technology, distributed simulation technology, critical infrastructure exercises, and cybersecurity curriculum.  Norwich provides a truly unique program utilizing state-of-the-art forensic tools unheard of at other institutions of this size.

We are honored to have the President of NUARI, Phil Susmann, address our members at next week’s VCIA Legislative Day in Montpelier. Phil will speak at lunch in the Capital Plaza Hotel on January 23rd along with DFR Commissioner Mike Pieciak and a welcome from Lt. Governor David Zuckerman.

Legislative Day is a chance for our members to meet the State’s top political leaders and hear about the issues that are facing Vermont in the upcoming year. It’s also a great chance for the captive industry to say “thank you” for the over 30 years of support from politicians and policy leaders from all stripes: Democrats, Republicans, Progressives and Independents.

There will be meetings with legislative leaders and presentations to House and Senate committees. And don’t miss the Q&A opportunity with Dave Provost and the DFR Team after lunch! The event concludes with a fabulous evening reception where legislators, elected and appointed officials and VCIA Members mingle and exchange information about Vermont’s captive insurance industry and make plans for its continued success in 2019.

So, if you haven’t done so already, register here for a great day!

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

Rich Smith
VCIA President

Let the Games Begin (and Congrats Vermont – Again)!

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The Vermont General Assembly began the first half of the legislative biennium this month. Both houses of the Vermont legislature now have a supermajority of Democrats, so Governor Scott (R) will have less room to push back on any legislation he doesn’t support. That being said, the House Commerce Committee’s new chair is Mike Marcotte, a Republican and former vice chair of the committee. Senate Finance remains in the hands of veteran Ann Cummings; both these committees oversee captive insurance in Vermont and both are strong captive insurance supporters.

As we do every year, VCIA initiated a process to build an agenda for suggested changes to the captive statutes for the 2019 legislative session.   With the results from our membership survey in hand, we meet with  Vermont’s captive management firms and law firms to hear their suggested changes. Then comes an iterative process with Dave Provost’s team at Vermont’s Department of Financial Regulation resulting in a consensus bill to present to the legislature. This year’s captive bill will be mostly tweaks and technical corrections, but even those are important in staying current in our ever-changing industry.

On another note, congratulations again to DFR and the State of Vermont! For the fifth straight year, Vermont was ranked the BEST  insurance regulatory environment in the United States, according to the R Street Institute’s  Insurance Regulation Report Card, an annual examination of which states best regulate the business of insurance.

Don’t forget that January 23rd  is VCIA’s annual Legislative Day in Montpelier, Vermont’s capital. It’s a full day of meeting and hearing from Vermont’s political leaders on the captive industry and issues facing the State broadly. Go to www.vcia.com and register today!

Thank you and I look forward to hearing from you.

Rich Smith
VCIA President

The Great Wall and Beyond

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As I mentioned in my last blog, I traveled to China right before the Thanksgiving holiday to speak before the 2018 Jing-Jin-Ji International Insurance Forum in Tianjin. My presentation focused on the introduction of Vermont’s captive market, development and supervision. I also participated on a panel that discussed the captive rules in Asia, U.S. and Europe, best practice and the latest innovation, with insurance supervisors from Hong Kong, Singapore and Guernsey as well.  I focused on how Vermont regulators create a “partnership” with the captive insurance companies while keeping a strong regulatory hand on the tiller. I emphasized the support from Vermont’s political leadership as well. This message was well received by my Chinese captive insurance colleagues.

IMG_1613It was a great trip, especially to see and hear how the China captive market is emerging. As I mentioned last time, there is a relatively small number of captives in China right now – and mostly held by state-owned enterprises (SOEs) like COSCO shipping, Sinopec and China Railway. However, there is a growing interest in captive insurance for private enterprises and other SOEs looking to better manage their risk.

The Chinese captive industry is very limited in scope right now. Like most regulators when presented with a new-fangled way of doing business, the China Banking and Insurance Regulatory Commission is taking a go-slow approach to captive insurance. The industry in China is looking to pick up steam and get interested parties from privately owned businesses to consider captives. They are also interested in helping move Chinese regulators to broaden the limits on captives currently in place.  And while it may be a long-shot to get a Chinese captive to domicile in Vermont, the fact that they are looking at VCIA as a place to learn illustrates the continued leadership of Vermont in the growing worldwide industry.  I look forward to continuing this dialogue and seeing how the Chinese captive industry evolves.

IMG_1614I want to thank in particular my colleague Geoffrey Cao, President of the Chinese Captive Insurance Association, who invited me over and played gracious host while I was in China. And a HUGE thank you to Christina Kindstedt, Senior Vice President of Advantage Insurance Management (USA), who provided a go-between with me and my Chinese counterparts, as well as helping with my trip every step of the way.  Thank you both so much!

I look forward to hearing from you!

Rich Smith
VCIA President