Captive Insurance Week in Review For October 3-7

october-cal

1.) Jay Adkisson wrote an excellent article for Forbes Magazine titled, “Not All Captive Insurance Risk Pools are Created Equally.”  It provides an excellent primer on risk pool basics.

2.) Carl Martin wrote and great introduction about captives for Businessinsavannah.com.  It’s titled Captive Insurance May Benefit Family Business.  It’s available at this link.

3.) FERMA recently polled their members and learned that companies are (gasp) increasingly using their risk managers skills:

European risk managers are taking a more strategic role in their companies with increasing access to top management levels and the board. Against this background, they have a wider vision of the risks that could affect the ability of business to achieve its objectives.European Risk & Insurance Report 2016

These are the key conclusions of the 8th European Risk and Insurance Survey conducted by the Federation of European Risk Management Associations (FERMA) and reported in the FERMA European Risk and Insurance Report. The report was published on 4 October 2016 on the occasion of the FERMA Seminar taking place in Malta.

More than half the 634 respondents to the survey are becoming:

  • involved in implementing risk culture across the organisation (68%),
  • developing risk management as a part of business strategy (62%) and
  • developing business continuity and other crisis response (59%) programmes,
  • and two-thirds report to the board or top management level.

The survey shows rising concern among risk managers about economic conditions and business continuity disruption since the previous FERMA survey in 2014. Together with political and country instability, these are regarded as the three top risks to businesses. Digital risks – cyber-attack/data privacy and IT systems and data centres – also increased in importance in 2016.

4.) Captive Review magazine recently named Steve Kinion of the Delaware Department of Captive Insurance the Captive Insurance Industry Advocate of the Year.  From the Press Release:

Insurance Commissioner Karen Weldin Stewart announced today that her captive insurance director, Steve Kinion, was recently selected as the 2016 Captive Insurance Industry Advocate of the Year.  Captive Review magazine recognized Kinion as its inaugural recipient for the award.  Over the past two years, Captive Review has also named Kinion as one of the top five influential people in captive insurance in the magazine’s annual Captive Power 50 rankings.

“When I brought Steve on board as my captive director in 2009, I knew that he had a unique set of skills to help me build and maintain a premier captive insurance program,” said Stewart. “Since then, captive insurance has provided tremendous value for Delaware.” 

In August, the University of Delaware released an economic impact study which shows that the Department of Insurance’s captive insurance program contributes nearly $360 million to Delaware’s annual gross domestic product.  The study also found that the captive program directly and indirectly supports 2,537 Delaware jobs, creates almost $109 million in additional income, and generates over $5 million for the state in tax revenue. “I was glad to receive this third-party confirmation that our captive program is having a significant positive effect on Delaware’s economy,” said Stewart.

“I was also proud that captive insurance revenues provided the funding this year for programs that train Delaware’s future doctors and dentists,” Stewart added.  One of five states without an in-state medical or dental school, Delaware annually pays for 25 medical and 5 dental slots with medical and dental schools in Philadelphia so that state residents have the opportunity to become doctors and dentists and return to Delaware to establish their practices. Surplus revenue generated by the captive insurance program was used to fund the Delaware Institute for Medical Education and Research, known as DIMER, and the Delaware Institute for Dental Education and Research, or DIDER, which reserve positions for Delaware students at the Sidney Kimmel Medical College of Thomas Jefferson University, the Philadelphia College of Osteopathic Medicine, and the Temple University Kornberg School of Dentistry.

 

About F. Hale Stewart JD, LL.M

F. Hale Stewart, Esq. is a partner at The Hale Stewart Law Firm.