OLDWICK, N.J.--(BUSINESS WIRE)--This episode of A.M.BestTV wraps up the first day of the annual Vermont Captive Insurance Association (VCIA) Conference, which brings together brokers, consultants, insurers, captive owners and managers to discuss alternative risk transfer. These participants say that the Non-Admitted and Reinsurance Reform Act is causing confusion in the captive industry. Small captives also face scrutiny from tax authorities and regulators, according to Meg Green of A.M.BestTV.
“Two related concerns are the continuing regulation increases we are seeing at the national and international levels, which either implicitly target the captive industry or explicitly look for it. Such actions are usually driven by a lack of understanding about what exactly an insurance company does. The other concern is about regulations in some domiciles not being as strong as they need to be.” said VCIA President Rich Smith.
According to David Snowball, Captive Division Director at Utah Insurance Department, tax considerations are changing the environment for small captives, spurring some captives to change domiciles, which might eventually encourage others to move offshore.
Another hot button issue is 831B-captives.
Other people who appear in this episode include:
- Nancy Gray, Regional Managing Director – Americas, Aon Global Insurance Managers;
- Jay Branum, Director of Captives, South Carolina Department of Insurance; and
- Fred Eslami, Senior Financial Analyst, A.M. Best Company
Full-length interviews from day one of the event also are available for viewing:
- David Provost, Deputy Commissioner, Vermont Captive Insurance Division: http://www.ambest.com/v.asp?v=provost814
- Nancy Gray, Regional Managing Director - Americas, Aon Global Insurance Managers: http://www.ambest.com/v.asp?v=gray814
- Rich Smith, President, Vermont Captive Insurance Association: http://www.ambest.com/v.asp?v=smith814
- David Snowball, Captive Insurance Director, Utah: http://www.ambest.com/v.asp?v=snowball814
Recent episodes of A.M.BestTV include:
- Air Disasters, Fires, Outbreaks Raise Global Risks: A look at how air disasters in Ukraine, Mali and Taiwan, and the Ebola outbreak in western Africa, are dominating risk concerns. Natural disasters include two major earthquakes in Central America and China, and raging wildfires in the western United States, which continue to take their toll: www.ambest.com/v.asp?v=news8814.
- Rise of the Super (Risk) Models: How a growing appetite for risk modeling is driving new models, modeling firms and more inclusive risk platforms, as reported by Kate Smith of Best's Review magazine. Also interviewed are Claire Souch of Risk Management Solutions and Jayanta Guin of AIR Worldwide: www.ambest.com/v.asp?v=model814.
- First Monday: Leading Analysts, Key Topics: A look at rising investment allocations to Schedule BA assets among U.S. property/casualty and life/annuity companies; the U.S. captive composite's continued outperformance over its commercial peers and the potential impact of Mexico's approaching risk-based solvency regime: www.ambest.com/v.asp?v=firstmonday814.
A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at www.ambest.tv.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.