Welcome Brittany!

I want to say a HUGE welcome from the Vermont captive insurance community to Brittany Nevins. As many of you have heard, Brittany recently joined Vermont’s Department of Economic Development as the new Captive Insurance Economic Development Director. She will be taking over from the estimable Ian Davis, now over at Peoples United (but still in our captive community!).

Brittany will be responsible for the marketing and business development of Vermont’s captive insurance industry, working closely with the Department of Financial Regulation and VCIA to continue to strengthen the state’s reputation as the premier onshore captive insurance domicile.  We have already had several calls and zoom meetings with hew and she is going to be great!

Located in Texas for the last 2 plus years, Brittany served as a community and economic development specialist for Travis County, Texas, managing its property tax rebate program for businesses that sought to develop in the Austin region. Prior to that, she was a policy specialist for the Texas Health and Human Services Commission, where she provided support for a variety of agency regulatory programs.

On top of all that, having lived in Latin America for a little while, Brittany is also fluent in Spanish. And as VCIA and the State of Vermont continue to explore connecting the Vermont captive industry to the Latin American risk management marketplace, it will come in handy. Although, she did warn me translating our nomenclature, such as non-domiciliary reciprocal risk retention regulations, will not just flow off her tongue! And it coincides nicely with next week’s Online Captive Trade Mission with Mexico which VCIA and the State are hosting on September 30th.  By the way, this event is free for VCIA Members – details here.

So, please take a minute to say “hi” to Brittany and welcome her into our wonderful community, like you did for me ten years ago. Her email is brittany.nevins@vermont.gov.

Thanks, as always, for your continued support in these trying times. I look forward to hearing from you!

Rich Smith
VCIA President

Vermont = Competence

I was looking at a LinkedIn message from Tim McQuiston, the editor of the Vermont Business Magazine, the other day and it reminded me of how important the competence of both leaders and agencies in the State of Vermont is to its citizens.

Tim reminded us that Vermont has used a combination of strict health protocols and impressive compliance by students to keep COVID case counts down, despite 40,000 college students back in the state and tens of thousands of tests conducted.

Vermont COVID numbers are low per capita and have been from the beginning. Not that there haven’t been challenges here and there, but Vermont’s Governor, Health Commissioner, and overall team (along with the Vermont General Assembly) have remained cool, calm, and collected. And part of the leadership in the Governor’s team is Mike Pieciak, Commissioner of the Department of Financial Regulation (DFR) – which, as most of you know, includes captive insurance. The Governor relies on Mike and his team to assist with the modelling of the COVID numbers and analysis using actuarial science. The work and reports being generated by Mike’s team are being used to inform the Governor, Health Commissioner, and all Vermont citizens. With this useful pandemic knowledge and insight, we are all better equipped to make good decisions.

Vermont has a history of being practical. Even us flatlanders who came to Vermont from other places seem to adopt that attitude – maybe it’s the weather. That practicality permeates the state and provides a sense of quiet competence regarding our leadership.  And nobody does competence better than DFR – let us all take a moment to acknowledge the great work the DFR staff continues to do, no matter the circumstance.

Thanks, as always, for your continued support in these trying times. I look forward to hearing from you!

Rich Smith
VCIA President

Thank You!

Just a quick post to say a huge THANK YOU to all who participated in VCIA Virtual 2020!

It was quite an experience for us to transform our usual captive insurance conference into an online 100% virtual event. And although it was sad not to have been able to see everyone in Vermont this year, it was heartening to get so many nice comments from many of the participants.

I am proud of our staff and members for pulling this off in the short mount of time we hade to learn the ropes and make the conversion. To all our expert panelists who so gamely made themselves available to the attendees – thank you!

And a huge thanks to all our exhibitors and sponsors without which we would not be able to present all the great content that will now be available until the end of July next year. Special thanks to our Platinum Sponsors:

  • A.M. Best
  • Kroll Bond Rating Agency
  • Madison Scottsdale
  • Old Republic Companies
  • Performa
  • Sedgewick
  • and the State of Vermont

I look forward to seeing everyone in Vermont next year!

Rich Smith
VCIA President

Summer’s here and it’s Grillin’ Season

 

I know last week I said summer has finally arrived here in Vermont after a tough spring with 80 degrees and sunny, well that’s nothing to the 90 degrees we had the past couple of days. And like I said that means it’s grilling season.

That reminds me that I am looking forward to my grilling of Vermont’s Commissioner of Financial Regulation, Mike Pieciak! Well, not that I am planning on a “grilling”, perhaps just a light “sautéing” instead. Mike is going to join me at the end of the first day of VCIA’s Virtual Conference to discuss.

Commissioner Pieciak will join me in a conversation with me on major issues impacting the captive insurance industry in Vermont, at the NAIC and beyond. We will hear Mike’s thoughts on transformative changes due to the COVID-19, the current regulatory environment, and other things I plan to spring on him.

Now Mike is a very smart guy and pretty unflappable, but I am going to do my best Mike Wallace on him (for all of you old enough to know the famed 60 Minutes reporter). More information to follow – I hope you can join us this August!

Rich Smith
VCIA President

There’s More to the Story…

panelA key component in a captive program’s success is its ability to adapt to changing market conditions, economic turbulence, new & emerging risk and even the recent changes in the definition of employment. Even in the midst of this dangerous pandemic, underlying issues impacting the captive industry were emerging.

VCIA will be hosting a webinar next Thursday, May 14th, that will explore ways to shift captive strategy to respond to the business needs of your parent company and optimize your program in our changing market.  Our presenters will demonstrate captive success with emerging risks, illustrate current challenges and keys to achieving a positive outcome, and explore what questions to ask to create a successful pathway to deal with such unforeseen events such as COVID-19.

Our speakers will be four leading thinkers in the captive industry:  Andrew Baillie is the Program Director, Global Insurance for The AES Corporation, a global power producer and distributor, where he supports risk management oversight and the procurement of insurance, as well as managing the company’s large, Vermont-based Captive Insurance Company; Steven Bauman works for AXA XL serving as Head of Global Programs and Captive Practice in North America; Ed Koral is a managing director with BDO’s Insurance Risk Advisory group; and Christine Brown is Assistant Director with the Vermont Department of Financial Regulation – Captive Division, where she directly supports the Director of Captive Insurance and Deputy Commissioner of Captives with licensing, industry outreach and strategic planning.

Join us to learn how to remain agile during these challenging times. Go to www.vcia.com and register today.

Thank you and I look forward to hearing from you!

Rich Smith
VCIA President

May Day!

IanMay 1st is here and with it the signs of spring… new beginnings.

As you all probably have heard by now, Vermont’s intrepid Ian Davis is leaving the Mother Ship and heading off to a new position within the captive family as Senior Vice President, Captive Insurance Relationship Manager at People’s United Bank. Ian will be responsible for business development, qualification, expansion and overall relationship management for the bank’s captive insurance portfolio.

Ian served as Director of Financial Services at the Vermont Department of Economic Development, leading the marketing and business development activities in support of the State’s captive insurance industry for three years. In that role he stepped into large shoes left by Dan Towle, who is the current president of CICA.

I am so glad for Ian in his new position and so, so glad he is staying in our world of captive insurance. Don’t get me wrong: he will be missed in his role with the State as he was the consummate professional, truly representing Vermont’s best in captive insurance. But very smart of People’s to recognize talent by putting Ian in a leadership role in their captive insurance arena.

As the State looks to fill Ian’s position, the estimable Tim Tierney will step in as interim director. Tim is Director of Recruitment and International Trade at Vermont’s Department of Economic Development. He already was helping us on our planned Mexico Trade Mission this September, and I am looking forward to continuing our work.

So goodbye… and welcome, Ian! I look forward to our continued partnership and, more importantly, our good friendship.

Thank you and stay safe!

Rich Smith
VCIA President

Team VCIA + Team DED + TEAM DFR = Team Vermont

2You may ask yourself (and others) just how is VCIA going to pull off a successful 100% virtual captive insurance conference this August. Well, we are still working out the details, but one BIG reason I feel confident it will be great is the support and brainpower we get from our colleagues at the State of Vermont’s Department of Economic Development (DED) and Department of Financial Regulation (DFR).

Often, when I go to captive insurance conferences, people talk to me as if I were a regulator from Vermont. Not surprising, many folks conflate our distinct organizations because we coordinate so well with each other. I will then explain that, no, I am not a State employee but staff the captive trade association. And even though we are separate organizations with our own missions, we absolutely work in tandem for the good of Vermont’s captive industry.

Now is one of those times I am truly proud of that essential teamwork. VCIA staff met yesterday via Zoom with Ian Davis from DED and the captive leadership from DFR: Dave Provost, Christine Brown, Dan Petterson, and Sandy Bigglestone, to discuss ideas on the best ways to make the VCIA Virtual Conference truly awesome. The State folks brought excellent ideas, innovative thinking, and, most importantly, terrific enthusiasm to the process. Their professionalism and broad perspectives underscored just how lucky we are to have their partnership.

So, keep an eye out for details. We plan to bring you a terrific conference – and could not have done it without Team Vermont!

Thank you and stay safe!

Rich Smith
VCIA President

Go Big!

going-virtual

As you may have heard, VCIA decided this week to move our Annual Conference in August to a 100% virtual event.

This decision definitely was not made lightly. VCIA Board, staff and Conference Task Force members labored over the facts, sought outside advice, and kept you all foremost in our minds through all the discussions. Though the full social and economic impact of the pandemic is still unfolding, we believe it will require recovery time to get back to “normal” for all of society, including our industry.

Going to a fully virtual conference is consistent with the uncertainty the next few months brings and the need to put public health first, and it also ensures the industry will have an opportunity to share important and critical information – especially regarding future pandemic risk management.

The response from our members of going virtual has been very positive.  I know there are folks who think we may have made the wrong decision or that we should have waited longer before making the decision, and I understand their feelings. However, we knew if we were to bring you the best conference possible in a new virtual space, we needed to get out of the gate quickly.

By starting now, we are confident that VCIA will deliver a virtual event that satisfies your needs for top-level education and networking, our exhibitors needs to have their products and services seen, our sponsors desires to be associated with a leading enterprise, and the public health system’s need for social distance and caution. Presenting in a virtual space may also open up the conference to those who may not have been able to travel this summer. With corporate travel and finances being currently of concern, we hope this can be a helpful shift.

There will be much more information to come on conference specifics. For now, please bear with us and trust that VCIA has taken into account your needs. Your continued support will be key to the success of the conference, just as it has been for the past 30+ years.  We are successful in large part due to the enthusiastic and committed involvement of you, our members.

When times are tough, the captive industry has a way of adapting. We are fortunate to be among such innovative professionals, like you. We will all get through this together.

Thank you and stay safe!

Rich Smith
VCIA President

Mud Season

Just a brief check-in with everyone out there in these unprecedented times. The VCIA staff and I sincerely hope that you are all navigating this situation as skillfully as possible and are staying well.  Things have not radically changed since last week —like many governors, Vermont Governor Phil Scott has issued a stay-at-home order in place until April 30th. Gov. Scott says he expects to extend that timeline but it’s unclear right now for how long.

All organizations are seeking a road map through this crisis, but it has been difficult. We all operate best on data and information, but as we know, things seem to change daily. As Janice Valgoi said on a staff call this week, it seems appropriate that we are in Mud Season here in Vermont; as everything is about as clear as mud for the time being. Let’s hope we all gain some clarity in the next few weeks. And let’s especially hope that the health of our many communities fares as well as possible.

VCIA continues to push forward with all staff working from home. It has been great hearing from our captive insurance friends on how they are doing and sharing stories within this crisis. As usual, many captive professionals continue to surprise and inspire VCIA with their creative thinking and problem-solving skills. Our members truly are the best and the brightest. Thank you all.

Please feel free to reach out to any of us here at VCIA if we can be of help in any way (or you just want to say hello).  VCIA is presenting a webinar May 14th covering current market conditions, impacts on captives, and raising good questions and discussion on the current crisis. Be sure to join us!

Thank you and stay safe!

Rich Smith
VCIA President

COVID – 19 (are virtual happy hours our future?)

Day Five of our quarantine. My family made the decision to self-isolate when my son returned from San Francisco this past Monday. His work took him on the subway, he was working in a restaurant downtown, and he took a cross-country flight so it seemed like a no brainer. Certainly, it is a little easier to self-isolate in rural Vermont than in downtown New York, or even Burlington, Vermont.

We are certainly in strange times and unchartered territory for most of us – even those of us whose job is risk management! I have found myself rationalizing that things can’t get that bad and that it will clear up soon, even with the reality slamming us in the face. It is hard for any person, company or government to jump to more draconian measures, even when we see what is happening in other places hit by the virus before the United States. A little dose of paranoia might make us, as a society, get a little ahead of the curve. Maybe its time to trust your inner Cassandra*.

That being said, my wife and I joined a few friends of ours on a virtual cocktail hour last night. I opened a bottle of wine, brought out some cheese, and then connected with the two other couples through videoconferencing. It sounds a little silly, but it worked great – and we were able to get a dose of social interaction at our kitchen table!

It still doesn’t explain why for some reason I stocked up on potato chips and Ben & Jerry’s last Sunday…

Thank you and stay safe!

Rich Smith
VCIA President

*Cassandra was a woman in Greek mythology cursed to utter true prophecies, but never to be believed. In modern usage her name is employed as a rhetorical device to indicate someone whose accurate prophecies are not believed.