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

Playing Well in the Insurtech Sandbox

Concept of Insurance policyLegislation to enable insurtech experimentation and innovation in Vermont is on its way to the Governor’s desk for his signature. In the next week or so, Governor Phil Scott is expected to sign the insurance and securities bill (S-131).  Among other things, this bill creates an insurtech “sandbox” which will allow more R&D in this area with specific guidelines. It also updates Vermont’s surplus lines laws.

The regulatory sandbox in S-131 will provide the flexibility necessary to accommodate new concepts at the same speed as insurance technology develops. It does so by lowering or eliminating the hurdles facing this sector in bringing developments to market amid an insurance regulatory landscape that does not always accommodate such development. Not everyone will be able to play in the sandbox environment, as eligibility criteria limits the number of clients and a limited time period for the developers is part of the package. Overall, though, it’s a great step forward.

Earlier this year, Commissioner of Financial Regulation Mike Pieciak and Secretary of State Jim Condos signed a memorandum of understanding outlining their collaborative efforts to explore emerging blockchain technology and its use in the digital recordkeeping practices of the captive insurance industry.  They jointly issued a Request for Information (RFI) to identify vendors that may work with the State to launch a pilot program allowing new captive insurance companies to register with the Secretary of State using blockchain technology.  The pilot program will help the state identify areas where the use of blockchain technology in regulatory and other government business may increase data security and reduce costs for residents and those doing business in Vermont.  There were more than 20 submissions which the department is currently reviewing.

The support of the insurtech sector and the blockchain pilot program are great examples of Vermont’s openness to technology trials and innovations in our State, and Vermont’s awareness that the insurance industry as a whole is ripe for innovation.

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

Rich Smith
VCIA President

Give Peace (Church) a Chance

 

boatsMy thanks to Phil Leaman and his board of directors at Peace Church Risk Retention Group (a reciprocal) for inviting me to join them for their meeting in Vermont last week. Phil is COO of Peace Church RRG, and spoke at VCIA’s recent Road Show in Philly.  Peace Church is part of a larger umbrella organization that provides services to approximately 140 organizations with programs for aging, disability and behavioral health.  Phil is also an active member of VCIA’s Legislative Committee and participates first hand in VCIA’s legislative and regulatory efforts.

I was on the panel with two absolute pros from Vermont’s Department of Financial Regulation captive insurance examination office, Dan Petterson and Heidi Rabtoy. We gave an overview of DFR’s regulatory regime, VCIA’s activities on behalf of our members, and how both organizations work cooperatively for the industry.  What a great opportunity for the State and VCIA to get directly in front of a captive board to report on our activities and take their questions! I think they left with an even better feeling of being domiciled in Vermont and being a member of VCIA than when they arrived – at least I know I did!

In speaking with Dan and Heidi afterward (and Deputy Commissioner Dave Provost), we all agreed we would welcome other opportunities to get before captive boards of directors.  So, keep us in mind for your next captive board meeting in Vermont. Having us there makes Vermont look good and can make you look good, too!

On another note, thanks to everyone who came out Wednesday afternoon and evening for VCIA’s Board Meeting and Annual Spring Mixer. The evening on the deck of the Burlington Sailing Center overlooking Lake Champlain was absolutely gorgeous. Add in good food and drink, and great friends, and it was a super event! Thank you to Johnson Lambert LLP for sponsoring the mixer.

 

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

Rich Smith
VCIA President

Come Sail Away, Come Sail Away, Come Sail Away… with VCIA

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Sure, not all of you are Styx fans, and may have never heard this hallmark anthem from the late 70’s, but I wanted to make sure you were all invited to our annual Spring Mixer next Wednesday, May 15th at the Burlington Community Sailing Center overlooking beautiful Lake Champlain.

Join us for a unique opportunity to connect with industry colleagues at a number of activities that are taking place that day. Hear updates from VCIA’s Board of Directors at the General Session Meeting from 3:30 pm – 4:00 pm in the Big Education Classroom on the second floor at the Sailing Center.

Immediately following the board meeting in the same room from 4:00 pm – 4:30 pm, our favorite regulators from Vermont’s Department of Financial Regulation will be on hand to share what’s on their minds and take questions from our members.

And finally, we move onto the Merrill Family Terrace on the rooftop of the Sailing Center to mix and mingle with your colleagues in this beautiful setting.

All of this is FREE to members graciously sponsored by our friends at Johnson Lambert LLP.  So, come to all are part of the day’s events and come sail away… at least for the evening!

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

At RIMS in Beantown

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I am down at the giant RIMS convention in my hometown – Boston – right now. There is a large contingent of Vermonters down here all being herded by Ian Davis, Vermont’s Director of Financial Services.

Our goal is to have Vermont stand out in a field of 10,000 plus attendees at this conference. Vermont brings down their “super” booth which draws a crowd every year for those who want to learn more about our innovative industry, to those who just want to come over and say “hi”. Janice Valgoi and I with a number of our members hold our own against the huge presence of many international insurance companies, brokers and service providers.

And sure, Bermuda gives out their bags every year (how many Bermuda bags can one own!), nothing beats Vermont maple syrup and the ice cream social we host every day. So, if you are at RIMS, please come by and say hello!

And speaking of conferences, online registration for the VCIA 2019 Annual Conference opens tomorrow! Some fantastic new features are in the works for this year including “Captive Immersion”, “Learning Circles”, an outing to Burton Snowboards for captive owners, and a longer exhibitor reception with samplings of Vermont spirits throughout the hall. We have two excellent keynote speakers; one is even an astronaut! It’s going to be a fantastic event. Check it all out at www.vcia.com and let me know what you think!

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

Rich Smith
VCIA President

Lights, Camera, Act(ion)!

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Governor Phil Scott signs Vermont’s updated captive bill on April 18, 2019. Behind him from left to right are Ben Gould (Paul Frank + Collins), Ian Davis (State of Vermont Department of Economic Development) and Mike Marcotte (Chair of the House Commerce Committee)

As I mentioned in my blog a couple of weeks ago, the Vermont legislature passed this year’s captive bill pretty quickly and all we were waiting for was the Governor’s signature to make it officially
an Act.

Yesterday, at the Governor’s ceremonial office in the State House, Governor Scott did just that! Surrounded by VCIA members the Governor signed this year’s captive bill into law strengthening Vermont’s captive regulation in a variety of areas. This year’s bill proposed several updates, including modifications to the captive examination schedule and improvements to the statute governing group captive investments. The enhancements included in this year’s bill highlight the state’s ability to work closely in partnership with Vermont’s Governor and state legislature to ensure its captive law remains the industry gold standard.

Along with State officials, those participating included VCIA legislative chair Ben Gould of Paul Frank + Collins, John James from Performa, Mat Robitaille and Connor Duffy from KeyBank, Steve Killoran and Rich Litchfield from Maple Capital,
Michelle Ambrose and Linda Elliott of Marsh, and Christina Kindstedt
from Advantage Insurance Management.

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

Rich Smith
VCIA President