The Gospel of Captives and Temple

students

As I mentioned in my last blog, we were in Philadelphia last Tuesday for one of VCIA’s famous Road Shows serving up our sermon on the gospel of captives to a group of around 100 attendees. My heartfelt thanks to all the participants and our sponsors: Trion-MMA, Old Republic PMA, Kroll, and the State of Vermont.

Jeff Packard of Old Republic PMA acted as our MC, introducing the panels while providing entertaining (and educational) anecdotes of his many years in the captive industry. Our panelists were terrific as well! Kirk Watkins, Captive Practice Leader of Trion-MMA, walked through the basics of captives including types, lines and the process of setting one up. Then Ian Davis, Director of Finance, and Sandy Bigglestone, Director of Captives, provided an overview on regulation and licensing of captive insurance in the State of Vermont.

The second panel included two of Vermont’s captive insurance owners, Gary Langsdale, University Risk Officer for The Pennsylvania State University which owns Nittany Insurance Company, and Phil Leaman, COO of Resource Partners and Peace Church Risk Retention Group (A Reciprocal). Both provided excellent information from their many years of experience in operating captive insurance companies.

Gary outlined the complexity of his captive which covers 8 million sq. ft. of floor surface in 700 buildings, a 107,000-seat football stadium, 45,000 students, 16,000 faculty and staff, 1900 owned motor vehicles, two large hotel and conference centers, and, my favorite, a nuclear reactor sharing a driveway with the child care center!  Phil talked about how his captive covers Quaker, Mennonite, and Church of the Brethren facilities serving the aged and other assisted living populations.  With approximately 140 organizations and 16,843 insured units, Peace Church has gross written premiums of $55,433,689.

But most of all, we had around 30 students from Temple’s Fox School of Business studying risk management or actuarial sciences who joined us that afternoon. This extremely poised, intelligent group of young adults asked the best questions and provided all of us great hope for the future of the captive industry. My sincere thanks to Michael Zuckerman, Assistant Professor at the Fox School of Business and Management’s Dept. of Risk, Insurance and Healthcare Management, for bringing such an inspiring group of students!

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

Rich Smith
VCIA President

Philadelphia Freedom!

elton-john-rich

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

Baldy Smith Rides Again!

baldy2Another successful VCIA Legislative Day this week at Vermont’s State House in bustling Montpelier. Our members, including many who came in from afar, got to hear from Vermont’s Lt. Governor, David Zuckerman, as well as Vermont’s Commissioner of Financial Regulation Mike Pieciak at our luncheon, and then later in the day from the Speaker of the House, Mitzi Johnson, the President Pro Tempore of the Senate, Tim Ashe, and finally from House Minority Leader Patty McCoy. Even though they represent different parties under the Gold Dome, what they do have in common is their unwavering support of the captive insurance industry in Vermont

At our lunch we heard from Phil Susmann, President of Norwich University which hosts the NU Applied Research Institutes (NUARI). Just a few miles south of Montpelier, NUARI serves the national public interest through the study of critical national issues and the development of related educational and training programs. Phil and his NUARI colleagues have been instrumental in helping U.S. banks and financial firms test and harden their resiliency against major cyber events.  NUARI’s simulation tools enable hundreds of players across the country—from broker-dealers, clearing firms, and stock exchanges to U.S. banks, regulators, and law enforcement agencies—to test themselves against lifelike simulated cyberattacks. The exercise has become the largest single-day event of its kind for the industry.

VCIA testified before House Commerce and Senate Finance in the afternoon. VCIA board member Heather McClure knocked it out of the park with her testimony connecting work of the Vermont legislature in support of captive insurance with patient lives at Oklahoma University Medical Center, where their APIC captive supports advances in patient care. Members of the two committees were visibly moved by the impact of her testimony!

Finally, for the first time we held our reception for legislators in the venerable Cedar Creek Room at the State House. And this is where the story of Baldy Smith comes in, for in the Cedar Creek Room hangs a recently acquired painting of the Civil War general. VCIA’s Diane Leach wondered if Baldy is an ancestor of mine, and although the likeness is uncanny, as far as I know Baldy is from a different branch of the Right Honorable Smith Family.

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

Rocky Mountain High

Rich-Denver

First, shame on you for thinking I was going to milk our VCIA Road Show to Denver next week with some type of cannabis-related pun or joke. John Denver television specials were a big part of my memories growing up, of course.

Second, yes we will be in downtown Denver on Wednesday, November 7th with our Road Show, at the IMA Corporate Office. Starting at 1:00 local time we will spread the good word about captive insurance to folks in the Mountain Time Zone.  The Original Captive Insurance Road Shows are structured for the maximum education and networking that four hours will allow. The afternoon includes two educational seminars featuring captive owners and captive professional panelists including the Vermont Deputy Commissioner of Captives, who document their companies’ experiences in forming and operating a Vermont captive. Our two owners are a couple of old hats at this game (I could get in trouble for calling them old hats).

Jan Klodowski is the vice president of Agri-Services Agency Inc. a wholly owned subsidiary of Dairy Farmers of America. She is the administrator for Agrisurance Inc., a Vermont domiciled Sponsored Captive that provides Workers’ Comp and Health coverages for the farming and agricultural industry in the United States. Part of Jan’s responsibilities includes the development and management of successful Captive/Alternative Risk Financing programs for their members. Jan is a licensed Insurance Broker and holds the designations of Associate in Captive Insurance and the Associate in Risk Management.

And Heather McClure is an executive director of operations at OU Physicians. She is a licensed attorney in Oklahoma and Texas with an LL.M. in Health Care Law. Heather has worked exclusively for hospitals and physicians for over 20 years. She is responsible for risk management, professional liability, and patient safety for the multi-specialty academic medical practice, which includes partnerships with multiple hospitals across Oklahoma and encompasses nearly every adult and pediatric specialty as well as 72 ambulatory clinics. Heather is also the Chief Operating Officer of OU Physicians’ captive professional liability insurer, Academic Physicians Insurance Company, which covers approximately 750 faculty physicians, 700 resident physicians and 700 medical students at the University of Oklahoma College of Medicine.

The afternoon wraps up with a networking reception for all attendees. CPE / CLE credit available for seminar participation. VCIA members and nonmembers alike who have captives, serve captives or are exploring the formation of captives are invited to attend!  Go to www.vcia.com to get more information and register.

I can’t wait to feel the sunshine on my shoulders!  Ah, the grass is always greener…

Rich Smith
VCIA President