The Closer

Don’t miss the VCIA Conference Aug 10 – 12! Panelists for the ‘Hot Topics with Dave Provost’ session, from L to R: Tracy Hassett, Steve Legg, Sandy Bigglestone, Ellen Charnley and Dave Provost

OK, enough with the procrastination! The VCIA Annual Conference starts August 10th, and because it is virtual, folks tend to wait until the last minute to sign up. I understand! But online registration for the event closes Monday at noon – so NOW is the perfect time!  

Besides all the great educations and networking opportunities, the one event during the conference that everyone waits for is Hot Topics with Dave Provost. For those few of you who don’t know Dave, he is the preeminent captive insurance regulator in the world (don’t take my word for – ask anyone) and his knowledge, experience, and sense of humor, provides just the right closing to our much-anticipated captive conference.

The distinguished group joining Dave (see photo above) are Sandy Bigglestone, Vermont’s Director of Captive Insurance (and Dave’s right hand woman).  In 2018, Sandy was a recipient of the Women to Watch Award for her leadership, expertise, and accomplishments in the captive insurance industry by Business Insurance. Ellen Charnley, President of Marsh’s Captive Solutions Practice, is recognized as a global leader in the captive industry. And, Steve Legg, who has been with Starbucks since 1997, serving as director, risk management since 2006. Aptly moderated by VCIA board member, Tracy Hassett, President and CEO of edHEALTH, a first of its kind consortium of colleges and universities with the mission of reducing health care costs while enhancing consumer knowledge of options, plan design, disease management and wellness programs.

This epic group will get you totally up to speed on current developments in captive regulation, key issues facing the industry, future initiatives, increased interest in captives as a response to challenging markets, and much more. You can even ask them questions and provide comments of your own. Don’t miss it!  

So, take this moment to register for VCIA 2021!  Join these experts  and other audience members and share your experience and insight to make the conference even better. YOU are what makes this event incredible!  Check it out here and Register Now!

I look forward to seeing you next week!

Rich Smith, VCIA President

Can We Talk?

As I mentioned last week, collaboration is at the core of what makes VCIA so important to the broader captive insurance industry.  Understanding that, we’ve scheduled several semi-structured, interactive Discussion Groups  during the upcoming VCIA Conference  open to all attendees to allow the captive community a chance to converse with one another around topics of interest.

One group, whose focus is Getting Comfortable with Change, asks questions like ‘how do we accept and learn to even embrace change, and how do we assist our colleagues and clients in embracing change?  What opportunities and risks are developing because of recent events in our world?’ They will also explore how  companies are utilizing  captive programs to mitigate risks and enhance corporate wellness programs.

US Regulatory Realm is a Discussion Group that will give insight into what the NAIC is working on and its impacts on captives.   Lead by Vermont’s Director of Captive Insurance, Sandy Bigglestone, and Zaw Win, a director in DRM’s Business Law and Captive Insurance groups (and chair of VCIA’s Legislative Committee), this is an opportunity to look at the industry from a state regulatory view, allowing the group to discuss and consider a more uniform approach to working through key items as a collective unit.

One group of experts will provide some background on a proposed federal backstop for business interruption and event cancellation claims that occur because of a pandemic or public health emergency. The Pandemic Risk Insurance Act (PRIA), mirrors many of the fundamental mechanics of the Terrorism Risk Insurance Act (TRIA) which was established in the wake of September 11, 2001, to help provide adequate terrorism coverage in the United States. Will PRIA be good for captives? Are there other options? Will it pass? Come  join in the discussion to find out.

The certainties of life: death, taxes, and collateral. That is what Ed Koral of BDO, and Jeff Packard of PMA will serve up through a lively exchange of war stories, cautionary tales, and common-sense tips on how to navigate your organization through difficulties with reinsurance or self-insurance collateral requirements. Collateral Without Damage highlights steps you can take to ensure that you are better prepared for contentious negotiations and equipped with more leverage.

Everyone in our industry knows we need to attract and foster the next generation of professionals who will take captive insurance to new heights. Finding a Mentor is perfect for those new to the industry and looking to make their mark, as well as those who are long-standing members of the industry, looking to share knowledge, help someone along, and find a renewed purpose. 

Totally Cellular, Dude! You guessed it, the growth of new cell and sponsored captive formations across all domiciles will cover a brief background on cell/sponsored captives and explore recent developments, innovative uses, reporting and general evolution.

Talk amongst yourselves! The VCIA Annual Conference will be held online August 10 – 12th, which is fast approaching. Take a moment now to check out all the details here and Register Today! Thank you and I look forward to seeing you soon!

Rich Smith
VCIA President

Come Collaborate!

Alex Petrovich will facilitate the Captive Owners Only Forum at the VCIA Annual Conference in August.

One important aspect of the VCIA Annual Conference is the time that captive professionals connect and collaborate together outside of the educational sessions.  This is especially true for captive owners. It is such a niche career, and yet so important for those in it to have broad understanding.

Captive managers and other outside team members are invaluable  in advising and helping owners  address challenges and support growth, but the opportunity to discuss issues and ideas candidly with captive owner peers is hard to come by and can be immeasurably helpful. During the VCIA Annual Conference (less than 3 weeks away!) we’ve designed an  ‘off-the-record’ session (no press is allowed, and the session is for owners only), for captive owners to seize the opportunity to ask colleagues how they’ve addressed issues, and lend wisdom, stories of success, and knowledge to other captive owners.  

The forum will be curated by Alex Petrovich, an executive tasked with operating Circle Star Insurance Company, a Risk Retention Group and a segregated cell facility, STCICI. Alex spent almost a decade on the insurance company side, most notably at a Berkshire Hathaway subsidiary in the areas of underwriting, business development, finance, and operations.  He went on to work at Gallagher, leading cross functional teams and consulting with large companies on alternative risk management solutions, including captives.  Prior to his current role, Alex was a partner at Lockton Companies, the world’s largest privately owned insurance brokerage.

Collaborative interaction is the core of what makes VCIA so important to the broader captive  industry.  Not only does it shore up your captive knowledge and expand your captive horizons, but it strengthens the association through shared experience.  It’s the perfect example of a symbiotic relationship: your participation is the key to the continued success of VCIA as it strengthens our mission – which  allows VCIA to create these spaces to strengthen your captive IQ.  Quite a win-win!

The VCIA Annual Conference will be held online August 10 – 12th, which is fast approaching, so check out all the details here and Register Now!

Thank you and I look forward to seeing you soon.

Rich Smith, VCIA President  

Three…Two…One…Ignition

Last week I spoke about the increased interest of parametric insurance in the captive space as evidenced by the number of Ignite Talks coming up at our virtual conference focused on this emerging specialty. However, that is only one of the many topic areas being covered with Ignite Talks by the captive industry at VCIA’s 2021 Annual Conference coming up in three weeks.

We informally polled some of our captive owners to ask them what some of the challenges are that their captives have recently faced. We then asked our members to respond to those challenges (or those they have focused on) and present them in our Solution Labs at the conference. Ignite Talks are short, “TED-Talk” style presentations on these solutions.

Some of the challenge areas besides parametric insurance that will be covered include cyber regulation, captive strategic planning, third party risk, tax strategies, employee benefits, premium payment options, use of InsurTech, cell structures, legacy solutions, mentorship, managing volatility, risk distribution, predictive modelling for workers comp, finance and investment strategies, actuarial impact of the pandemic and situational awareness. Quite an incredible line-up!

The VCIA Annual Conference will be held online August 10 – 12th, which is just 3 weeks away so check it out here and Register Now!

Thank you and I look forward to seeing you soon. 

Rich Smith
VCIA President

Happy Fourth

Last week I talked about our meeting with the British Consulate and discussing opportunities regarding captive insurance. This week we head into the Fourth of July holiday where we red-blooded Americans rant against the British monarchy… er, no – we usually have a cookout, hang out with friends and family, and go watch fireworks. As a matter of fact, Americans may even love the Queen more than our Brit friends!

Keeping with the British connection, one of the keynote speakers for this year’s VCIA conference in August will be Hank Watkins, Regional Director & President, Americas, Lloyd’s of London – the venerable British insurance market.  Hank will be  joined by Vermont Commissioner of Financial Regulation, Mike Pieciak, to discuss the perils and opportunities associated with ESG (Environmental, Social and Governance) issues and their practical application on the captive insurance industry. Be sure to register for the VCIA Annual Conference to check out this interesting keynote and connect with hundreds of other captive professionals!

I hope you all take  time this weekend to relax and enjoy this brief summer break. With the conference fast approaching, it will be good to rest and regroup  before digging back into captive insurance.  And invite one your favorite ex-pats along to your  BBQ!

Thank you and I look forward to seeing you soon.  

Rich Smith,
VCIA President

Time to Gear Up!

As we all have heard over the past year or more, the captive insurance market is booming. I can’t tell you how many of our members I have spoken with  in the past few months who’ve mentioned how busy they are  setting up new captives, or helping clients expand current captive programs.  Dave Provost from Vermont’s Department of Financial Regulation reported  that Vermont has already licensed over 20 new captives – a “normal” year for Vermont is about 24,  and we are not even halfway through the year!

So, that said, this is the perfect time to open registration for the VCIA Annual Conference! The event will be held virtually August 10th – 12th and registration officially opens June 15th. There will be plenty of top level education  for newbies to get a better handle on this new risk tool they have just established,  and plenty on how best to optimize captive programs that have been around for a while.

Sessions include setting up new captives, reinsurance programs that are available and appropriate for captives, and a discussion of whether risk retention groups are a mature industry.  In addition, this year’s VCIA conference will include education focused on  captive taxation issues and captive investment portfolios.  The conference will conclude with a session in which Dave Provost and his stellar team  will discuss captive “hot topics” with the top risk manager for Starbucks.  Educational sessions will continue to discuss up to the minute emerging and current risks, and how captive programs relate to those risks.

This August we will be offering more ways for small groups to connect in video chat rooms. The event will feature  Ignite Talks,  Solution Labs, Morning Coffee and great keynote speakers. CPE, VT CLE and CRE credits are available to those who participate in the virtual conference webcasts. 

So keep an eye out for conference details and  registration opening next week, and prepare yourself to gear up!

Thank you and I look forward to seeing you soon.   

Brexit?? Verm-enter!

autinpowersrichsmith
I just hosted a VCIA Members-only webinar yesterday called “Captive State of the Union” where we explored what VCIA is doing legislatively in Vermont, DC and internationally to keep the captive industry strong and thriving. I was joined by the redoubtable Dave Provost, Deputy Commissioner of Captive Insurance for the State of Vermont, and the sagacious Jim McIntyre, VCIA’s veteran DC counsel.

Toward the end of the webinar, we had a chance to discuss a few international events that may impact the captive industry, including my favorite term of the year: Brexit. Lately, much of the news has been dominated by Britain’s vote to leave the EU, and especially how it might affect the world of finance and insurance – including captives. The answer is, I have no idea.

Obviously, many UK captive domiciles, like Gibraltar and Guernsey will have to figure this out as this slow-motion train wreck unfolds. And of course, many captives and RRGs based in the US have reinsurance agreements with the likes of Lloyds. However, I like what Dave Provost suggested: Vermont would be glad to host a reinsurance marketplace here in our beautiful state. Instead of Lloyds of London it will be Lloyds of Lyndon (Lyndon, Vermont that is)!

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

Rich Smith
VCIA President

School’s Back In!

 

jack-black-smith-2Just got back from a couple of conferences this week and it always gives me great perspective. First, I attended the Self Insurance Institute of America (SIIA) conference in Austin (cool city!) where the focus is primarily healthcare and workers comp. SIIA brings together all the self-insurance groups in these areas, but is seeing a growth in the captive arena as it pertains to stop-loss and workers comp.  VCIA’s Janice Valgoi, DFR’s Dave Provost, Primmer’s Jesse Crary and I did many hours of booth duty over the course of a couple days. We had a number of people come up to us and ask, “So what’s the State of Vermont doing here?”  After explaining Vermont’s role in the world of captives it became clear to them and they seemed eager to understand captive insurance as the next new marketplace, but it also became clear to me that it will be a lot easier for organizations that are already working in the captive space to add stop-loss or workers comp, than vice versa.

At the National Risk Retention Association (NRRA) conference in Chicago (another cool city!) later in the week, I participated on a panel that examined the Next Generation and diversity in the captive insurance industry. The cool thing was that there were a number of insurance students from some nearby colleges who were not shy about what they think the industry should do, including coming into the classrooms and doing a spiel on captives, as well as providing mentoring and internships.  I think one of the best lines about this came from our long-time friend, Michael Bemi. When addressing the issue about the perception that insurance is boring, he said in captives you aren’t selling insurance, you’re building insurance – has a nice ring to it, I would say!

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

Keep Moving Forward

richonsegway

A couple of quick updates from the President’s corner…

We are in the process of surveying our members and talking to captive leaders here in Vermont about potential changes to Vermont’s captive statute. After gathering ideas and vetting them internally, we meet with the leadership team at DFR and begin an iterative process that will ultimately produce a “captive bill” for introduction to the Vermont legislature in January. Coming in with a coordinated bill between the regulators and the industry gives us the clout to move a bill quickly to passage. If you have any good ideas (hey, even crazy ideas) send them my way – you never know!

Just a quick note to let folks know I will be attending the SIIA (Self-Insurance Institute of America) conference in Austin starting this Sunday and then heading directly to the NRRA (National Risk Retention Association) in Chicago on Tuesday night. SIIA is a member-based association dedicated to protecting and promoting the business interests of companies involved in the self-insurance and alternative risk transfer (ART) industry, including captive insurance. It’s a great opportunity to meet and talk to others in the self-insurance world. And NRRA’s conference brings together the leaders in the RRG industry annually to discuss the opportunities and challenges in the world of Risk Retention Groups. Vermont has more RRGs licensed than any other captive domicile.

And finally, I want to give a shout out to Bob Gagliardi from AIG (and VCIA Board Member) for his promotion. Bob was recently promoted to AIG’s Global Director of Captive Management and US Fronting. Our expectation is that AIG will need to build a new skyscraper in downtown Burlington to fit the whole operation.  Congrats, Bob!

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

Rich Smith, VCIA President

Back in the Saddle…

rich-back-in-the-saddle

Thanks to all who joined us in beautiful Burlington, Vermont, a couple of weeks ago for VCIA’s annual conference. Without a doubt, it was a terrific 2 ½ days with great programs, networking and events. With over 1000 attendees from 41 states and 14 countries, our annual gathering in August has grown to be THE captive insurance forum! To quote from one of our attendees “All the important captive market players from North America and parts of Europe were in attendance.” And many thanks to our sponsors and exhibitors without whom we could not put on such an event, as well as to the hundreds of volunteers who make it happen.

Now after a little break, we are back in the saddle again looking out for the captive industry. Currently we are working with U.S. Treasury on changes to the TRIA data call for captives, fighting to pass the NRRA clarification bill, and generally looking out for the captive insurance industry. You got to be a tough hombre to keep the posse moving!

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

Rich Smith
VCIA President