One of the most highly-anticipated events in the captive insurance industry is the international conference hosted by the Captive Insurance Companies Association (CICA). Kicking off on March 10, 2019 and concluding on March 12 in Tucson, Arizona, the CICA 2019 International Conference brought together nearly 600 attendees from all sectors of the captives industry. The conference included 34 educational sessions, numerous insurance industry exhibitors, and a variety of networking events for industry players, including meals and receptions. This year’s theme for the conference was “Captives: Shaping the Future”, and focused on innovations and trends within the industry.
In the conference’s opening address, CICA President Dan Towle pointed to emerging technologies and new types of business opportunities helping to shape the industry. Technologies in the medical, renewable energy, cannabis, and information architecture industries have spurred innovation within the captives industry. These new technologies are not well-served by traditional insurers, providing numerous opportunities for captive companies to provide creative and effective coverage solutions. With careful investigation into emerging technologies and business interests, captives can rise to meet the new challenges, adding products and services to address unique risks across many different business sectors. In particular, cyber insurance coverages were explored in several educational sessions. This aspect of the captives landscape holds great promise for opportunities and is helping to drive growth across the industry.
In his address to attendees, Towle also indicated that the captives industry continues to suffer from misunderstanding, both in its role in protecting assets as well as the correct uses of captive insurers in the business environment. This misunderstanding has led to increased regulatory scrutiny in recent years, particularly in the United States from the Internal Revenue Service and on the international front by the Organization for Economic Cooperation and Development (OECD). In many cases, captive insurers were established and licensed to gain favorable tax treatments. Leaders within the industry stress that captives must continually monitor activities to ensure that these entities are created solely for the purpose of insuring risks; implementing best industry practices protects the reputation of the industry at large. Courts have used economic substance requirements to reject claimed tax benefits in certain cases where a captive conducted transactions solely as a means of avoiding taxation. By adhering to industry best practices, captives can maintain accountability, thus reducing or eliminating some of the regulatory scrutinies the industry currently faces.
Special focus on the next generation of captive insurance personnel was a highlight of the CICA conference. Throughout the schedule of events, attendees had opportunities to learn more about attracting and retaining talent, particularly in college-age individuals. Among the many ideas presented in the educational seminars was for captives to create recruitment initiatives on college campuses, implementing internship programs, and leveraging technology to identify and recruit new talent.
Developing training and staff development programs was also highlighted, helping to prepare new employees to take charge of their careers. Development programs allow newer recruits to hone much-needed skills at a faster pace within the industry. These programs also provide a streamlined mechanism to facilitate the transition from classroom to office environment. CICA has long been a vocal advocate for education within the captives industry, so it was no surprise that the conference focused on this critical aspect. In all, the CICA 2019 conference was a success, both for presenters and for attendees.
Caitlin Morgan Captive Services provides clients with captive insurance solutions supported by years of experience in establishing the successful formation and implementation of a wide range of captives. To learn more about how we can help you, please contact us at (317) 575-4440.