Tag Archives: captive industry

Recapping a successful, historic VCIA Trade Mission to Mexico City

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Mexico and Vermont. Aside from the glorious Cabot Habanero cheese (which likely has no content from Mexico!), the links might not be immediately apparent. But we are working on fixing that in the captive insurance space, and it started with VCIA’s triumphant Trade Mission to Mexico City, as our Vermont contingent established quality relationships with our Mexican counterparts that will last for years.

This week has been the most incredible and positive experience for the expansion of both the industry and Vermont as a domicile. I will be providing an in-depth debrief with our member-exclusive special report coming out in the near future, but for now, there are some major highlights that I want to share as we close our memorable visit.

The Roadshow: Many of you reading this may have either participated in or attended a roadshow, but this international one had a different flavor. Simultaneous translation being the most obvious distinction! Before a full room of about 100 attendees, panels and speakers not only reviewed the Vermont process for establishing a captive, but also covered Mexican tax and regulatory implications.  The audience had a great many well-developed questions, and were clearly keen to explore both the background and the applicability to their own insurance challenges.

The meetings: Multiple meetings with trade associations, government entities and business groups revealed the appetite that there is for captives in Mexico. The desire is there and VCIA and Vermont have pledged our investment in figuring out how captive solutions can work for Mexican companies.

The people: The entire delegation has been impressed with the cordial and cooperative attitude of everyone that we have encountered. This trade mission was about forging relationships in Mexico, and I’m confident these partnerships will continue to grow and yield great captive opportunities for Mexico and the Green Mountain State. Bonus if we get some Mexican friends to come out our Annual Conference in August!

Before…about 100 attendees, speakers not only reviewed the Vermont process for establishing a captive, but also covered Mexican tax and regulatory implications.  The audience had a great many well-developed questions…and were keen to explore the background and the applicability to their own insurance challenges.

VCIA President Kevin Mead on the successful Mexico City Trade Mission

The VCIA, the DFR, the DED and our facilitators from within the federal government can all be proud of how we represented Vermont and the industry this week.  All of us have an extensive to-do list, with lots of substantive follow up, not just thank you notes.  We are convinced that this is a market where Vermont can offer tangible value to Mexican entities, and I am looking forwards to providing you with a special briefing on this in the very near future.

Previewing VCIA’s Historic Trade Mission to Mexico Happening Next Week

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With a sixteen-inch storm due at my Vermont house, this seemed like a good time to escape to 80+ degrees in Mexico City!  Aside from the weather, the real reason is the VCIA’s curation of and participation in the first ever trade mission from the Vermont captive sector to Latin America; in particular, our southern neighbor Mexico, the second largest Latin American economy and one with robust industrial and manufacturing sectors. Our goal is simple: to establish lasting relationships between Mexican companies and the Vermont captive community.

Beautiful Mexico City

My colleague, Janice Valgoi, has spent many hours moving this from a standard VCIA roadshow into a fully-fledged multi-day event that will include meetings with industry and financial sector leadership groups as we present the case for captive insurance in general and Vermont as a domicile specifically. My hope is that I will be able to provide real-time updates via my LinkedIn Page, and if we gather enough material, to produce a Special Mexico Trade Mission Report to VCIA Members, just like we did with Legislative Day.

Three years in the making (thanks COVID), these plans were revitalized as travel restrictions were lifted. We are now all delighted to be working on developing this market – one that Vermont already has exposure in – and building a global brand for our Brave Little State.  Joining myself and Janice on this trip are Brittany Nevins from the VT Department of Economic Development (DED), and the Department of Financial Regulation (DFR)’s captive team of Sandy Bigglestone, Christine Brown and Jim DeVoe-Talluto. You can find the State’s informative press release about our trade mission here. In addition, Susan Murray of the US Commercial Service, and Tim Tierney, the DED’s Director of Business Recruitment and International Trade, have been a great help, and will also be joining us in Mexico City.

For our March 1st educational session, the Vermont contingent will be joined on stage by captive owners and managers from Mexico, as we all demonstrate how coverage and pricing challenges can be addressed through captives. We have an extraordinary talented lineup that will offer diverse perspectives on the innovative uses of captives for corporations. As I’m still a captive student, I will be sure to bring my paper and pencil!

Everyone has been so patient with this project, which was planned long before my arrival – and especially tolerant have been our sponsors, AIG & Marsh, as well as the State of Vermont, all who have graciously allowed us to rely on their support despite the delay. My sincere thanks goes out to our sponsors and everyone that has made this landmark trip for our association possible – especially you, Janice Valgoi! I look forward to sharing more once I’m on the ground in “The City of Palaces.”

VCIA and Vermont Captives Have Many Reasons to Be Cheerful!

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Last week I spoke about the generalized optimism present at the World Captive Forum from the domiciles that were both presenting and exhibiting.  For this week, I am going to expand on why the Green Mountain state has ‘Reasons to be Cheerful.’ 

Firstly, the numbers.  Another top 10 year in 2022 for Vermont with 41 new captive formations and a current total of 639 licenses.  Additionally, the state hosts 59 sponsored cells with an individual count of over 500. Of which over 40 were new this year. Vermont’s Governor Phil Scott said of the achievement: “Vermont has so much to offer, and the captive insurance industry remains a point of pride in our state.”  It is also worth pointing out the range of activities that Vermont-based captives support: Healthcare, construction and real estate all featuring heavily.  And Vermont stretches its wings a little too, with new captives being formed by entities based in Canada, Mexico, and Austria.

Secondly, stability.  While there has certainly been a ‘changing of the guard’ the knowledge and strength within the DFR remains unparalleled.  Be sure to watch out for details of our March webinar when some of the new leaders with the DFR (who, bluntly, are not that new at all!) will be sharing answers to the questions you need answered.

Thirdly, the VCIA.  We are expanding and planning for the future – a future where we play an expanded role to match the growth that we are seeing in Vermont and beyond, and the increased demand around the industry for the quality education, networking and information unavailable elsewhere.

So, in fact, there are many reasons to be cheerful about the state of the captive industry and especially the state of the industry in Vermont. By my count it’s up to ‘Reasons to be Cheerful – Part 3.’  Added bonus points for anyone that can tell me the name of the under-appreciated band that produced a song with that title in 1979! Check it out below, and always feel free to reach out to me.

Reflecting on One Year In as VCIA President

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Almost a year ago, before I even joined the VCIA, I attended the World Captive Forum in Miami, and well, here I am again, learning and networking. And what a year it has been, my first as VCIA President! More on that in a future blog, but I am happy to report that there is further evidence here at this event of the resilience and growth in the captive industry. Right now, I am sitting in on the regulatory panel (featuring Vermont’s own Sandy Bigglestone), and every domicile present is talking about growth, new product lines and innovation across the board.

Vermont and VCIA had a productive (and fun!) World Captive Forum

For Vermont and VCIA it has been a great event, strengthening our stakeholder relationships and building new ones.

We also debuted the new Vermont booth – please pay no attention to the fact that 4 captive professionals working collaboratively could not get the lights on right!  Despite that, the booth looks great (we fixed the lights) and certainly acted as a beacon within the exhibit hall. Vermont is off to the races to try to top last year’s 41 new captive count!

I met a fellow Mead in the exhibit hall!

I also got to fulfill on my mantra of ‘cooperate to grow the pie, compete for a larger slice’ by visiting with the other domiciles present to specifically invite them to the VCIA’s Annual Conference in August. While many already attend, I was happy to invite them to come as exhibitors. The greatest accolade that we could get for the VCIA Conference would be when an attendee says ‘I attended the event and got the solution I needed.’ Of course, I would be delighted if that solution was Vermont, but I must also recognize that there are many offerings in the marketplace. So far, we’ve gained great interest in other domiciles/associations for our booth spaces!

That’s all for my live World Captive Forum reporting. Sad to say we New Englanders must leave sunny Miami and return to Vermont with a temperature shift of 107°F forecast. Winter may be hard, but it won’t last forever in the Green Mountain State, and the closer spring approaches means the closer our 2023 conference cycle starts!

VCIA’s Captivated Blog Heads to the Capitol: A Recap of 2023’s Successful Legislative Day

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I am not expecting a Netflix development contract to come my way after my TV appearance (well, YouTube – the recordings can be found here and here) testifying before Vermont’s Senate Finance and House Commerce committees, but you never know.  In fact, I was just the ‘warm-up guy’ for the real stars, VCIA Board Chair Tracy Hassett, and the VCIA’s Legislative Committee Chair, Ben Gould.  Tracy had a compelling story about saving millions of dollars for edHEALTH (a member-owned higher education group) through their medical stop-loss captive, while Ben detailed how the legislation that these two committees work on keeps Vermont as the Gold Standard of the industry. Both committees were very receptive to us, and look forward to updating and finalizing a captive bill for 2023. As soon as there is any progress, we will let VCIA members know!

Senate Finance Testimony
VCIA President Kevin Mead in conversation with House Speaker Jill Krowinski during Legislative Leadership meetings

Following committee testimony, VCIA’s legislative advocate Jamie Feehan organized a slate of a Legislative Leadership meetings, where nearly 30 VCIA stakeholders heard from House and Senate Minority Leaders, House Speaker, Lieutenant Governor and the State’s Treasurer on what their priorities are for the legislative session, how the parties work together, and why they will continue to be champions of the captive industry and optimize the legislation that supports it.

But I need to back up!  Before all of this, the VCIA’s Board held a public session where we heard from the DFR’s Sandy Bigglestone and the DED’s Brittany Nevins on the state of the captive industry in Vermont.  41 new formations (another ‘top 10 year’)! This was followed up by an informal lunch, where House and Senate legislators were able to mix with VCIA members and staff and learn about what we do. Attendees also heard comments from DFR Commissioner Kevin Gaffney and DED Commissioner Joan Goldstein, both of whom pledged support for and praised the Vermont captive industry and VCIA. The common question of the day from lawmakers: where can I find the next captive industry for Vermont? We didn’t have an answer, but we responded quite passionately that we will continue to protect and strengthen the actual captive industry in Vermont!

A productive Legislative Day lunch, as a number of new legislators learned about Vermont captives

Headcount restrictions in place at various locations precluded us from having a mass turnout as in past years, but rest assured that this was an effective and informative Legislative Day that we can build on after two years of virtual attendance.

Given that our advocacy work at a federal and state level is always rated as one of our strongest benefits, there’s no better time to become a VCIA Member.

We are starting a series of exclusive member reports with a Legislative Day Document that will share video and specific commentary made by Vermont Legislators, and we plan to deliver it to our members in the next week! If you’re not a member yet, connect with Membership Director Janice Valgoi and make that new year resolution come true by joining us – for we are strength in numbers!

VCIA Fact Sheet distributed to Vermont lawmakers. An exclusive, detailed report of the day will be sent to VCIA members in the near future!

Bookmark this Benchmarking Webinar Happening Next Week!

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I can’t tell you how many folks have shared their excitement with me about VCIA’s upcoming Captive Benchmarking Webinar taking place next Wednesday November 16th at 2-3pm EST. It’s been a few years since our last benchmarking program, so it’s high time to update everyone on the health of captive financials in the State of Vermont. This year’s event is gearing up to be one of our most-attended webinars, and you can still get the important data by registering here!

I am lucky enough to moderate a conversation with the above captive financial data wizards, and I wanted to hear from them beforehand why they are excited for next week’s webinar.

With negative year-to-date investment returns reducing both profitability and surplus for captives, it is an opportune time to discuss best practices in benchmark selection for insurance entities that not only considers investment risk tolerances, but also the connection to the risks being underwritten by the captive

Bill piel, President of Institutional Markets, Opus Investment Management

During the webinar, Amy Angell of Milliman, Inc., plans to review surplus levels, identify ways to monitor claims performance, and to evaluate whether risk management programs are having the desired outcomes on the loss experience. She’ll do this all by looking at the hard data of the financial records of the 2021 EOY domiciled captives of the State of Vermont, listed by type of captive and by industry type.

What’s revving her up for next week? She told me point blank: “Benchmarking is a powerful tool that provides meaningful and actionable insights to captive owners.” If you want to start game planning for captive’s financial goals, then there’s no better place to start than our Hot Topics webinar.

Next to Amy will be her accomplished colleagues, Becky Aitchison, Captive Insurance Examiner for the State of Vermont DFR, and Bill Piel, President of the Opus Institutional Markets.

Becky is basically the source keeper the data aggregated and shared annually by the DFR. She will explain the key ratios used by the DFR for the surveillance of your captive’s financial health, and what markers she looks for in determining how a certain captive may or may not be thriving.

From an investment perspective, Bill will let you in on the primary reasons for establishing an investment policy and how the DFR data can help assist with developing an appropriate asset allocation unique to your captive. He will also identify ways to monitor investment performance and evaluate whether results are having the desired impact on your financial statements.

What makes Bill excited for the webinar? “With negative year-to-date investment returns reducing both profitability and surplus for captives, it is an opportune time to discuss best practices in benchmark selection for insurance entities that not only considers investment risk tolerances, but also the connection to the risks being underwritten by the captive.”

So, we have the expert who comes up with the data, and the other experts who will explain how to use the latest data to your benefit. It’s a win win!

I look forward to facilitating a data-driven conversation that looks into how your captive – and the Vermont captive landscape at large – has faired in the last financial year, and what that may say about the future. Remember to register, and “see you” there!

New York City Impressed by VCIA Roadshow

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My second VCIA roadshow and it was remarkable in so many ways. On LinkedIn, attendee Isaac Muller said, “It was a fantastic experience as we met industry experts from the insurance and  captive worlds. We listened to them, we learned from them and got to talk to many of them.”

Thanks for hosting, EY!

Immersive sessions had Andrew Baillie sharing his experiences at AES, delivered with his trademark gentle Scottish humor. Presenting with Andrew was Dianne Salter, and she added insight into captive usage in regional medical centers with multiple campuses and thousands of professionals. The regulatory environment was well-covered, and there was a fascinating peek into the future of captives with another panel led by Mikhail Raybshteyn.

Added to this was the view from EY’s new building – peering down 48 floors to the new Moynihan Train Hall and across to the Empire State Building. Not bad, for New York!

That’s it for 2022 roadshows, but our first for 2023 will be in Mexico City. We’re going global! And please, feel free to invite us to your city and learn what captives can do for you, your clients and risk management professionals.

A huge thanks to our sponsors – the State of Vermont, Marsh, AM Best and EY!

I love New York, even though it isn’t mine, the way something has to be, a tree or a street or a house, something, anyway, that belongs to me because I belong to it.

Truman Capote

Vermont Captive’s Smooth Transition Proceeds: Christine Brown Named Next Director of Captive Insurance

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Before we gather for #VCIA2022, a few major changes have been placed on the horizon for the State of Vermont and its preeminent Captive Insurance regulatory team–Mr. Captive himself, Dave Provost, retiring into the sunset; his heir apparent, Sandy Bigglestone, ready to assume the Deputy Commissioner role; and now Christine Brown, respected throughout the industry, promoted to Director of Captive Insurance. All three diligent, hard working, and great collaborators. And all three have spent years making Vermont the Gold Standard for captive domiciles. To me, that’s the definition of a stable “transition of power,” and it will only make more captives flock to the Green Mountain State.

Christine Brown

The official press released arrived in my email on Wednesday and you can read it in its entirety on the Vermont Captive website. The good folks at the State of Vermont quoted me on the appointment of Christine Brown to the position of Director of Captive Insurance at the Department of Financial Regulation (DFR): “The quality and stability within captive regulation in Vermont is proven yet again.  What an awesome choice to have Christine Brown succeed Sandy Bigglestone as the Department of Financial Regulation’s next Director of Captive Insurance. Christine has a long relationship with the VCIA and has served as a thought leader within the industry for many years. All of my colleagues here at the VCIA join me in wishing her the best in this appointment, and we look forward to seeing her in a few short weeks at the VCIA conference.”

And I meant every word of it!  In my short time with the VCIA I have already called in favors from Christine that I had not even built up – and she has always delivered. That Vermont has promoted from within for two critical positions speaks volumes of the talent its captive team has retained and cultivated.

During my 20+ year career in captive insurance, I have had the privilege of working with and learning from the best and brightest in the industry, most recently as Assistant Director supporting Sandy Bigglestone and Dave Provost.  I am honored to have been chosen for the Director position under Sandy’s leadership.  I look forward to continuing to grow and support the industry, together with my amazing colleagues at DFR and our valued industry partners as we promote Vermont’s standard of excellence.

Vermont’s Next Director of Captive Insurance Christine Brown

At this year’s VCIA conference you will find Christine at the State of Vermont booth, #40, and around conference events. She’ll be speaking at Captive Immersion on Monday and will cohost a discussion group on Tuesday. Be sure to connect with her and congratulate her on her well-deserved promotion!

Only 17 days until #VCIA2022 kicks off and I don’t want you or your colleagues, or frankly anyone you know related to the captive insurance industry, to miss out! Please be sure to register on our website here. See you in breezy Burlington in August in just a few short weeks!

Remembering Captive Industry Stalwart Andy Sargeant

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Ordinarily, my blog posts all somewhat upbeat and (to me at least) somewhat amusing. This is not to be one of those weeks. Because this week, the VCIA, the Vermont captive industry and indeed the captive community globally is marking the passing of Andy Sargeant, formerly of USA Risk Management.  Andy’s retirement predates my arrival here at the VCIA and so I have to leave it to his good friend, Gary Osborne, to remark, “He was a great friend to our community and especially the Vermont community where he added his expertise and knowledge to both the VCIA and ICCIE boards.” Gary goes onto say that Andy was, “one of those rare things – a well-liked and loved boss.” Vermont’s Seven Days newspaper ran a very touching obituary of Andy, and you can find it here.

Andy, you’ll be missed dearly

Please look for a more extensive tribute to Andy in our August newsletter. More importantly, please hold Andy, his family and all those that cherished his friendship in your thoughts at this sad time.

#VCIA2022 Keynotes To Give a Global View of Things

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With our early bird period in the rearview, and 700 and counting registrants (!) , we gear up for one more month of celebrating all things #VCIA2022, before our flagship event takes center stage of the captive world in August. By now, you know how important the networking and educational sessions will be. Let me turn your attention to why our two worldly #VCIA2022 keynotes are worth your price of admission. For both history buffs and people interested in politics and economics…we have you covered!

History maker Admiral Michelle Howard will be at the VCIA Conference

First, let’s start with our Special Keynote Speaker who will be closing out #VCIA2022 on Thursday August 11th with an inspiring speech and luncheon. US Navy Admiral Michelle Howard has not only commanded ships at sea but also a deep respect from all branches of the military. She’s a groundbreaking leader who has seen it all, enjoying a distinguished career in national defense within the areas of operations, readiness, and strategic planning.

What stories can she tell? Plenty! A veteran of operations that included NATO peacekeeping, Indonesia tsunami relief, Desert Storm and Iraqi Freedom, she was thrust into the international spotlight in 2009 as leader of the counter-piracy task force that rescued civilian Captain Richard Phillips from Somali pirates!

Hear from her a preview of what she’ll be talking about in her keynote address.

Her keynotes address leadership, cybersecurity, diversity, innovation and team building. To each, she lends experience gained from three decades on the front lines and highest levels of national defense. Bringing the empowering insights of an African-American woman who spent her career shattering glass ceilings and breaking new ground, she continues to motivate others with her highly inspirational presence.

This is what you’ll Get at #VCIA2022!

Next to an iconic military figure, The VCIA Conference has paired a geopolitical whiz as the second keynote speaker. Michael Weidokal, an internationally-recognized economic and geopolitical forecaster who helps business leaders and policy makers comprehend the issues and trends that are impacting the world today AND tomorrow, addresses #VCIA2022 attendees on Tuesday August 9th at 3:45pm.

Michael is the president and founder of International Strategic Analysis (ISA), a leading provider of economic forecasting, international market intelligence and geopolitical analysis with clients all around the globe. ISA is one of the world’s most respected economic and geopolitical research firms, providing research and support for thousands of the world’s leading businesses, governments and universities. Get a glimpse of what he will share at our conference below!

Michael’s ability to combine international economics, geopolitics and history allow him to have a unique perspective on the issues and events that are taking place throughout the world. His areas of expertise include the fields of international economic competitiveness, global market selection and geopolitical risk assessment. Furthermore, he has repeatedly proven to be able to accurately predict important trends and developments before they happen.

Get the Intel from Experts like Michael at #VCIA2022!
Happy Fourth of July!

Have a wonderful, long Independence Day weekend, everyone. Can’t believe we’re basically just a month out from our dynamic captive conference. Thank you to everyone who has worked hard to put it together and additionally to everyone has registered so far. We couldn’t do this without you. P.S👉 registration link for folks that missed the early bird bus. It’s still a great deal! And don’t forget to sign up for our golf tournament!