The 4 Biggest Themes from the 2018 Cayman Captive Forum

As we unpack our suitcases from another successful appearance at the Cayman Captive Forum – our 11th one attended as a company! – I’m also taking the time to unpack my thoughts on the event.

As a sponsor and exhibitor at the conference, which ran from November 27th to the 29th in the Grand Cayman Islands, our team had the pleasure of meeting a range of new faces and familiar colleagues. This is an event that we look forward to each year, and not just because it gives us a break from the cold weather. Drawing over 1,000 attendees, this is a top-notch event catered to captive professionals of all kinds, whether they are seasoned experts or newcomers.Cayman Captive Forum

The Cayman Captive Forum is one of many ways that we keep up with trends, priorities and news. So between ice cream socials and poolside receptions, I noted the four most prevalent categories from this year’s educational sessions.

1  –  Taxes
No surprise here, as taxes and captives go hand-in-hand. This year, audience members learned about captive considerations for taxable and tax-exempt entities. Further, a group of accountants and lawyers covered US tax reform in detail, highlighting how it all affects captives (i.e. CFC rules, changes to attribution rules, etc.).

2  –  Current Events
Naturally, any modern conference would take inspiration from current events, but I noticed quite a few sessions at Cayman that were focused on unrelated topics frequently seen in the headlines.

First, there was “Ridesharing in Healthcare”, which explored the role of transportation in population health management. Then, a panel explained the impact of the “#MeToo” movement on the healthcare industry – addressing harassment, bias and recommended solutions. Thirdly, a team from CHRISTUS Health told audiences of their experiences with Hurricane Harvey and its consequences, arming listeners with suggestions for future catastrophic events. Another session dealt with workplace violence, something we hear about far too often, and, finally, some healthcare specialists provided a defense strategy for an Ebola outbreak.

3  –  Blockchain
Blockchain is another hot topic, so it got some spotlight at Cayman this year. In “Blockchain Technology Global Trends”, we learned about blockchain regulations and issues pertinent to insurance and healthcare. Then a panel of accountants discussed the opportunities and challenges presented by blockchain as it relates to insurance.

4  –  Cyber
Cyber has been top-of-mind for risk professionals for several years. Unfortunately there has been no magical solution, so the subject remained front-and-center once again this year at Cayman. Charles Kolodkin and Rebecca Cady explained how to use Miscellaneous Professional Liability (MPL) to strategize for cyber risk. Their lessons learned included, “hone the ability to manage the claim” and “work with operational leadership and board”. Another session discussed how to control for vendor cyber risks, highlighting the increased interconnectivity between areas like big data, social media, cloud computing and the Internet of Things (IoT) and the role it all plays on cybersecurity.

 

All in all, the 2018 Cayman Captive Forum was an event to remember. Myself and my Spring team members enjoyed all of the networking and learning opportunities that the event brought about, and are already looking forward to next year’s!

Captive Insurance

Spring to Sponsor 2018 Cayman Captive Forum

The Spring team is delighted to announce that we will be sponsoring the Cayman Captive Forum which runs from November 27th to the 29th in the Cayman Islands.

While the conference’s location and weather (especially in November) are certainly a treat, we swear that’s not the only reason we’re going. In fact, Spring has been involved with the Insurance Managers Association of Cayman (IMAC, the host group) for over a decade, and its events and resources have never let us down. This year we will be joining over 1,400 otherCayman Captive Forum industry professionals to network and share our experiences and best practices. Attending conferences is one of the strongest ways that we keep our pulse on trends, and with such a large captive market in the Cayman Islands, this is one of the best.

A group of impressive speakers will present on topics like:

  • Risk distribution
  • Tax considerations
  • Regulatory updates
  • Cyber risk
  • Telemedicine

And much more!

If you are heading to the Cayman Captive Forum too, please stop by booth #7 to say hello to our team. We’ll be giving out a great raffle prize!

5 Ways VCIA is Future-Focused

The Vermont Captive Insurance Association (VCIA), founded in 1985, is the largest trade association for captive insurance in the world. As such, it’s no surprise that their annual conference yields both an impressive turnout and range of educational sessions. A long-time sponsor and member of VCIA, Spring anticipates the August event each year.

The VCIA 2018 Annual Conference, themed “Where the Captive World Comes to Meet”, was just as high-caliber as past years, but each event tends to build its own unique motif. This year, as about 1,100 insurance professionals gathered in Burlington, Vermont, and 40 presentations were made, the three-day conference seemed to emphasize “the future” most notably. The sessions below, along with general conversations I had with a range of people at the conference, are what led me to identify this theme.

  1. Future-Proofing Your Captive

    This presentation, including Spring’s Managing Partner, Karin Landry, urged audience members to consider emerging risks like climate, and highlighted ways in which one captive has and continues to prepare for the future. Then, Andrew Braille of AES Corporation outlined the organization’s plans for the future, including a 50% reduction in carbon intensity.

  2. Succession Planning: Bridging the Next Generation of LeadersEmerging Risks

    An experienced panel led this discussion on how to nurture and attract captive talent to ensure a bright future for the insurance industry, one that is aging and failing to appeal to millennials. Tips like developing mentoring relationships and utilizing updated technology were given.

  1. Blockchain & Distributed Ledger Technology

    VCIA attendees, myself included, learned a lot about blockchain during this Wednesday morning session. The presenters defined blockchain and explained how it will impact captives and the insurance industry at large in the years to come. Good news – experts expect blockchain to reduce costs, lower risks, increase trust, and save time for insurance professionals as it continues to evolve.

  1. Integrated Solutions: The Future of Risk Management

    Todd Cunningham and Carol Murphy highlighted the efficiencies to be gained by moving from a traditional insurance structure to an integrated model, where 1st excess coverage across lines all operates within the same system. They explained that this is the direction they see the industry will and should go.

  2. The Cognitive Captive: Artificial Intelligence for Smarter Insurance

    Tracy Hassett of edHEALTH, and two others informed attendees about how A.I. will affect insurance risks and the labor market, and explained the role that predictive analytics and “The Future of Mobility” will have.  A special focus was made on driverless cars and their impact on insurance.

To be clear, these are only a handful of informative and strong presentations (you can read about the others here), but the underlying theme is gear up for what’s to come.

I hope you enjoyed the summary, whether you were at VCIA or not. As you can see, I did manage to learn quite a bit despite the bike rides and cocktail receptions!

5 Times Inclusivity Took the Stage at DMEC

As a national sponsor of the Disability Management Employer Coalition (DMEC), Spring has been involved in the organization and its events for over a decade. Each year the team

DMEC

looks forward to the Annual Conference, among other DMEC events and initiatives. This year it took place in the fun city of Austin, and we made sure to do some sightseeing while we were there.

This was my first DMEC conference and I was amazed at the wealth of knowledge present. There was an obvious eagerness to learn that hung in the air, and learn we did. Over 700 professionals specializing in areas like occupational health, disability management, FMLA/ADA, claims management, HR and more gathered to share best practices and experiences. The resulting 40+ educational presentations and workshops did not disappoint.

Spring attends and sponsors a range of events throughout any given year. After each one, we take the time to reflect on key takeaways and then share them with our peers (like you!).

The name of the game in Austin this year was inclusivity. Here are five featured topics that explain why.

  1. “Impactful Diversity and Inclusion Strategies for the Workplace”

    This session highlighted the importance of workplace diversity and the trend towards it as a corporate goal. The presenter walked the audience through the different types of diversity, including the more obvious such as race, sexual orientation and gender, as well as the areas of diversity often over-looked: veteran status, education, tenure, full-time vs. part-time status, etc. We learned that these different demographics may have varying degrees of stress, pain, or health issues based on that one facet alone. Generational differences in things like returning to work and communications tendencies and preferences were also discussed.

  1. “Neurodiversity: Driving Innovation from Unexpected Places”

    A small team from EY led this discussion around neurodiversity, which is not a term you hear every day. The session focused on the importance of including autistic employees and understanding their specific needs from an employer. A shockingly low 32% of autistic adults are engaged in some form of paid work, a statistic which needs upward improvement.

  1. “Tools, Techniques, and Technologies for Creative Inclusive Workplaces”employee disability

    Anne Hirsh and Deb Dagit started out this presentation by opening the audience’s eyes to “Five Signs of Inclusion”: ethos, public relations/marketing, policies and practice, physical accessibility, and technical accessibility. They then walked through several tools and platforms that can help employers exhibit all five signs of inclusion.

  2. “Disability and Fitness for Duty in Transgender Employees”

    Brian Hurley, a medical doctor and expert in addiction and mental health, led an interesting session that educated attendees on sex development, gender identity, gender expression, sexual orientation, and gender dysphoria. He helped raised awareness around issues in the workplace, citing that 90% of transgenders surveyed reported experiencing harassment at work, and ended with an outline of model employer practices pertaining to transgender employees.

  3. “Get Explicit About Implicit Bias Using Compassionate Dialogue”

    In this presentation, more indirectly related to inclusivity as some others, a woman led an interactive discussion around implicit biases and the fact that we all have them. These are involuntary, inherent attitudes and stereotypes that we may not know we have. This of course can be problematic in the workplace, so audiences were given “debiasing” techniques to prohibit their implicit biases from interfering in fair and compliant practices.

absence managementWith over three full days of educational presentations, there were plenty of other hot topics such as mental health, return-to-work strategies, FMLA and ADA issues, and data and technology trends. The Spring team partnered with clients to present “Implementation Done Right”, where they highlighted best practices and tips for top-notch absence management programs.

All in all, the event was a valuable learning experience. But it wasn’t all business – we hosted an “extracurricular” activity at a local Austin brewery to relax and mix things up, and there were all sorts of networking opportunities throughout. We are already looking forward to next year’s conference.

Don’t Risk Missing These 3 Hot Topics from RIMS

RIMS 2018Each year, the Risk Management Society (RIMS) hosts one of the largest industry events. The annual conference and tradeshow brings together thousands of insurance and risk experts, and for the 11th year in a row, the Spring team was among them. We were happy to take a break from Boston’s not-so-springy weather and head to San Antonio for RIMS 2018.

Over the course of the 3-4 days, I was able to a) meet and greet insurance colleagues, both new and familiar, b) party like a true Texan (in case you thought Risk Managers would make for a dull crowd – you may want to rethink this notion), and c) get a gauge on the most popular industry trends and concerns.

For this writeup, I’m focusing on point C, because between various networking and social events, there was a lot to learn at the RIMS annual conference, and I’d love to share some takeaways. Here are the most buzz-worthy topics, in my opinion.

  1. Cyber & Tech

As it has with conferences and news headlines over the past 5-10 years, technology took center stage at RIMS. However, I’m using “technology” as an umbrella term to represent a range of digitally-centric, Internet of Things (IoT) subjects, such as:

a) Cyber

During Berkshire Hathaway, Inc.’s annual shareholders meeting, Warren Buffett Chairman, President and CEO said, “Insurance is very early in the game in determining how to cover the risk of data breaches, ransomware anCyber RIsk Mitigationd other hacking perils”. He then went on to say that the risk itself is a “very material risk” that didn’t exist 15 years ago one that will get worse. The world of cyber threats and attacks continues to keep risk professionals up at night. From my actuarial perspective, the probability and severity of cyber loss events are becoming better understood, although there still is tremendous uncertainty due to the rapidly changing nature of the risk. The following Cyber sessions were presented at RIMS:

  • In “Are You Prepared for a Cyber Extortion Event?”, audiences were walked through different ransomware threats and a checklist for getting through such an attack.
  • Jason Trahan went into further detail in explaining the “Anatomy of a Cyber Event Claim”, which provided a preparation process for cyber claims as well as an extensive list of possible claims expenses.
  • A representative from Willis Towers Watson highlighted the importance of corporate culture when it comes to combating cyber risk.
  • A woman from The Washington Post Risk Management team led a discussion on the different insurance policies that intersect when it comes to cyber risk, and how to manage these overlaps.
  • Jeffrey Sharer of EY revealed some startling statistics such as: “89% say their cybersecurity function does not fully meet their organization’s needs”.
  • Joon Sung and Kevin Kalinich stressed the importance of recognizing and addressing your third party/vendor cyber exposures, nothing that cyber resilience is not just an internal matter.
  • During “Pay Up or Else: Ransomware Risks”, John Coletti and Anna Ziegler explained the latest trends and scams in the ransomware sphere and offered advice on how to be both proactive and reactive.
  • One session focused on communicating a cyber attack to your C-suite, board of directors, and/or other superiors. Ten best practices were shared, such as: “Have a customer notification plan and procedures in place.”

b) Autonomous Vehicles

In March, a self-driving Uber car killed a pedestrian in Arizona, and an autonomous Tesla vehicle caused another death in California. These two incidents are just a couple of many news headlines involving self-driving cars, which certainly pose a variety of risks. As such, they were discussed on several occasions at this year’s conference.

  • In a session entitled, “Driving Insurance Forward”, Katherine J. Henry provided an overview of how autonomous vehicles are covered, the consequences they can bring and ways to confront this emerging risk.
  • Representatives from Liberty Mutual and Ford Motor Company teamed up to explain the different industries that will be affected by the rise in self-driving cars, from oil to advertising companies. Their presentation spoke to the broader trend of disruption in the automotive industry, pointing out 4 facets to consider: autonomous driving, electrification, connectivity, shared mobility/economy.

c) Social Media & Mobile Apps

Considering the recent Facebook privacy scandal, it was important to look at social media and mobile issues from the perspective of risk management and mitigation.

social media risk

  • Gregory Bangs of XL Catlin spoke to the topic of “Social Engineering”, which can incorporate a range of scams such as vendor impersonation and malware. He explained what these fraudulent activities can look like and their implications for insurance coverage and employee preparedness.
  • In “Swipe Right on Insurance”, Cort T. Malone and Stephanie Hyde discussed the risks and insurance options related to social media platforms and mobile apps, as used by employees. They covered things like harassment, privacy, reputation, business torts, intellectual property and the regulatory environment.

d) Wearables

  • Thomas Ryan highlighted the opportunity a “wearable” device poses from a workers’ compensation coverage standpoint and guided the audience on selecting a wearable vendor for corporate use.
  • Two experts from Modjoul Inc. and Cotton Holdings Inc. explained wearables in detail – why use them, how to use them, how they work with insurance carriers, etc. Through a case study, they also endorsed wearables as an option to keep employees safe and productive.

e) Drones & Other Tech Matters

  • Chris Proudlove of Global Aerospace and Vincent Monastersky of Fox Entertainment Group presented the challenges and opportunities associated with the widespread growth of drone use, both commercially and personally. It turns out, over 75% of drone-related claims were caused by operator error. Further, they outlined coverage types and options.
  • A session on emerging technologies, including smart sensors, wearables, drones and artificial intelligence gave audiences a broad but detailed landscape of how all of this connectivity affects the “risk ecosystem”, and tips on drones business riskhow to prepare for the future.
  • Another discussion, led by Tim Yeates, covered the “Fourth Industrial Revolution” and the benefits and risks of the level of information being shared today. Thought-provoking questions like, “Who do we trust – human intelligence or artificial intelligence?” were posed.
  1. Natural Disasters

In 2017, the U.S. was hit hard with Hurricanes Maria, Harvey and Irma as well as wildfires in California. Outside the U.S., the Caribbean was crushed with those same hurricanes, a devastating earthquake hit Mexico, extreme flooding impacted areas like Bangladesh and Sierra Leone, and areas of China suffered from landslides and typhoons. Unfortunately, this is not an exhaustive list.

As risk professionals we need to look at these occurrences from a different lens, so it was no surprise that the word “catastrophe” was rampant at the RIMS 2018 conference.Catastrophic Loss

  • Stephen Moss explained the anatomy of a catastrophe risk model and pointed out the large protection gap, noting that about 50% of the losses incurred from 2017’s most impactful natural disasters were uninsured.
  • An attorney from McCarter & English, LLP focused on business interruption losses resulting from catastrophic loss, discussing pitfalls that could cause your claims to be undermined as well as best practices for getting coverage.
  • Robert Nusslein of Swiss Re explained parametric natural catastrophe insurance for hurricanes and earthquakes, how it differs from traditional insurance and how it can help fill in gaps.
  • In “The Future of Climate Risk Management”, audiences learned about their company’s climate risks – the size, scale, complexity and reach. Then, the speaker introduced solutions and tools for such risks.
  • James Pierce spoke on “Mother Nature’s Onslaught” and speculated on whether a new norm is needed in combatting natural disasters.
  • One session, “The Sky Fell”, went into further detail on catastrophic claims: common claim mistakes, communication issues between layers of insurance, crisis management tactics, TPA management and more.
  • The CEO and Founder of Orbital Insight, a geospatial analytics company, outlined how technologies like satellite and drone imagery as well as AI and cloud computing can provide insight into catastrophic risk assessments. He even showed audiences imagery showing flood detection for Hurricane Harvey, as one of several illustrations.
  1. Compliance

Compliance is always a key concern in this industry. What changes year to year are the specific areas of compliance focus, some of which are below.

  • Lisa Kerr and Bruce Wineman led a session on multinational program compliance – highlighting regulations, tax law, offshoring and variability as things to look out for.
  • A different presentation focused on Medicare and Medicaid compliance, going over the boatload of associated acronyms, lien compliance, reporting and what to look for in a partner.
  • In “Risk Management, Compliance and Preparedness”, attendees received an overview of SRM and ERM, examples of strategic risk, automation advice and more.

 

If you were able to make it to the RIMS conference this year, I hope this helps you retain they event’s key takeaways. If you couldn’t make it to San Antonio, well, now it’s almost as if you were there!

Please feel free to reach out with any questions, actuarial or otherwise. In the meantime, put RIMS 2019 on your calendar – April 28th – May 1st – in Boston (our backyard). We’re already excited for it!

2018 IBI Annual Forum: An Overview

The Spring team has been involved with the Integrated Benefits Institute (IBI) and its events for quite a few years now. The organization provides valuable resources for employee benefits and absence management professionals, and their annual forum is a great opportunity for industry experts to come together and share their experiences and strategies.

For these reasons and more (such as escaping winter in Boston), I was excited to head back to San Francisco earlier this month for the 2018 IBI Annual Forum. Over the course of the three days, I joined over 500 employers and service providers in helping each other advance our professional knowledge and capabilities. Acquaintances were made, colleagues were reunited, lessons were learned and cocktails were had. I even had the chance to join some clients on a panel to speak about, “Evolving Your Absence Management Strategy: Let’s Talk Best Practices.” In the spirit of shared learning, I like to relay what I found to be the most significant topics at a given conference.

So if you missed the IBI forum this year or lost your notes, here’s a brief overview:

1. Data
This was probably the biggest buzz word at IBI this year. Big data, small data, data of all kinds. In 2018, this is not surprising.Specifically, Dr. Bruce Sherman from Case Western Reserve University emphasized the importance of HR professionals incorporating health-related statistics into their strategy, and treating well-being as a means to improve business performance. Then on Monday afternoon, folks from UPMC discussed the power of Big Data, demonstrating their use of an integrated platform that ties in all sorts of metrics and allows employers to view customized reports from which they can act upon. Along the same lines, representatives from Aon and PSEG explained how PSEG was able to tap into data to increase employee safety and risk, productivity and well-being while decreasing absence. Lastly, another session entitled “Unlocking Data to Analyze, Benchmark and Diagnose Absence Drivers, Culture and Impacts on Outcomes” demonstrated how to use qualitative and quantitative data to better inform absence programs. The panel discussed the ability to use this data to modify plan design, improve administration, optimize plan expense, minimize plan liability and more.

2. Change
By this I mean that words like “innovation”, “new” and “revolutionary” were commonly heard at IBI 2018. This is to be expected, since many attend the event to hear the freshest ideas and trends, and they weren’t let down this year.Gary Earl presented on the rise in chronic diseases over the past several decades. He urged the audience to sway from the status quo by modifying systems, behaviors and environments to make positive changes in health. Then, a team from Morneau Shepell explained their innovative approach to a “total health strategy”, which looks at employee health at the individual level and demands dual-accountability from both employer and employee for better outcomes in the areas of physical and mental health as well as productivity.In “Work is Changing and Reshaping Return to Work”, Dr. Glenn Pransky of Liberty Mutual outlined the changes we are seeing in the American workforce: more automation, more remote workers, the incorporation of artificial intelligence, the emergence of the gig economy, the trend toward later retirement and so on. These changes, Pransky argued, warrant an aligned shift in return-to-work tactics through the use of more digitally-friendly systems in particular. This was a nice segue into a later presentation on virtual healthcare, which emphasized the efficiency and effectiveness of telehealth through actual case study results. A representative from Walgreens then spoke on a panel about the importance of employee engagement in their whole health program, which aims to make services more convenient.Lastly, as mentioned above, I spoke with colleagues from Robert Half, Guardian Life Insurance, Adventist Health System and Chevron about the need for organizations to evolve their absence management programs. Our focus was on offering results and experiences that exhibit how to identify trends within your company and within the market, how to choose and work with different vendors, the importance of gathering feedback post-implementation from all stakeholders, and the ways in which metrics can help inform all of these integrations.

3. Paid Leave
As more and more states are passing paid leave laws and regulations, and more employers are implementing their own policies whether or not they are mandated to, I was glad to see that this was one of the hot topics at IBI this year.One session included a case study from Norwell Health, a New York based organization with 60,000 employees who recently developed a new paid parental leave program. The presentation provided guidance on how Norwell Health considered things like benchmarks, predictive cost and productivity analysis, competitive advantage and measurement. On the second day of the conference, Michelle Jackson of Unum and Kristi Stormer of American Family Insurance provided an overview of several organizations who have implemented a paid family leave policy. They presented  on the business case for such programs as well as the time and funds needed to establish a PFL benefit.

4. Mental & Behavioral Health
Eliminating the stigma and getting to the core of mental health problems has been a core focus over the last couple of years, both within and outside of the workplace. The 2018 IBI Annual Forum helped continue and advance the conversation.One panel highlighted the importance of creating an understanding workplace environment where anxiety and depression are treated as normal issues and are allowed to be discussed and recognized. The speakers explained how creating such a culture will help an organization’s morale as well as its bottom line. During “Mental Health in the Workplace. Challenges. Strategies. Opportunities!” further addressed the problematic stigma of mental illness, citing that while 20% of the US workforce suffers from it, only 1/3 will seek help or treatment, for fear of prejudice. This presentation, led by on mental health specialist, one employer and one ADA attorney, focused on ways to increase access to education and support for mental health at work, including EAP programs and other accommodations. On the last day of the conference, a mental-health related session drew from the experiences of The Home Depot and Comcast in their efforts to destigmatize the issue. Specifically, speakers illustrated the role that sleep can play in mental illness and therapeutic solutions. Sleep is so often the answer, isn’t it?

 

I hope you’ve enjoyed this glimpse into the 2018 Integrated Benefits Institute (IBI) Annual Forum. Please don’t hesitate to reach out with questions about employee benefits, disability and absence management, or anything else related. Lastly, keep an eye out for a similar write-up regarding the 2018 Disability Management Employer Coalition (DMEC) 2018 Annual Compliance Conference at the end of April.

 

 

 

6 Buzz Words from CICA 2018

The Spring team has been participating in the CICA organization and events for about a decade now, and we find that their annual international conference yields one of the strongest turnouts and value in the captive industry. This year was no exception. Not only was the event enriching from a professional standpoint, but I was also pleased to have missed yet another Nor’Easter here in Boston as I soaked in some warmth in this year’s conference locale, Scottsdale, Arizona.

While it might take some time for me to put pen to paper to document all my thoughts, during such a busy conference season. As a team we like to recollect key learnings and themes from each event we attend. It helps us ensure we are up-to-date on industry trends, and, we hope, it helps you stay in the loop too! Here are my initial thoughts recapping of the 2018 CICA International Conference.

 

  1. Change

Given that the theme for this year’s conference was “The Challenge of Change”, I was not surprised that the topic was prevalent. The captive industry is just one of many that is facing changes on many aspects. One that everyone’s been talking about are the implications of the new tax law. Luckily we had a few speakers there to help and advice.Captive Insurance Innovation

The other major topic of discussion regarding change was the growing use of captives to address cyber risks. I spoke regarding the benefits of using a captive for cyber risks along with a high level overview of a survey Spring undertook with the objective of understanding captive owner’s outlook to cyber insurance and their interest in placing captive risks in the captive.

 

  1. Going Global

CICA, being the only non-domicile specific conference, is one that addresses issues both domestic and international. A session that particularly interested me was one where (insert names of the speakers) two representatives from the European Captive Insurance and Reinsurance Owners’ Association (ECIROA) provided a big picture overview of the European captive space, including domiciles and trends. A later session outlined lessons learned from setting up large captives for multinational organizations, going over things like baseline data and requirements, internal marketing, optimum capital retention and diversification. Further, Nicholas Frost, Gabriel Hoschneider and Esperanza Mead led a discussion on Latin American captives and other emerging markets, highlighting opportunities for growth and expansion.

 

International Captive Trends

 

 

  1. Future-ThinkingThe Future of The Captive Industry

     

It’s not enough to be armed for the present, but in all professions, captive and otherwise, it’s critical to be prepared for what the future might bring, and try to shape it positively. That’s why a panel from Butler University spoke to the CICA audience about recruiting and training millennials, emphasizing the importance of captives to further their knowledge of the insurance industry. The group went through a case study in which students conducted a captive feasibility study and established a process for implementation. They also offered tips on how to attract and retain young talent. On a similar note, Temple University students, staff and colleagues presented “Fueling the Quality and Quantity of the Next Generation of Captive Leaders”, which underlining mentorship as critical and explaining best practices for creating a mentor program.

 

 

  1. Actuarial

Actuarial work is obviously at the heart of risk management, but sometimes it doesn’t get a lot of spotlight at conferences. At CICA 2018, that wasn’t the case.

Firstly, a group of consultants, actuaries, regulators and captive managers offered a comprehensive view of actuarial reports – what should be included, how to pull it together, how it should be utilized and items often overlooked throughout the process. A later session, including legal and compliance professionals, provided a thorough review of risk distribution and how it can be achieved and measured.

Captives and Tax Reform

  1. Taxes

As I mentioned earlier, tax reform and its implications for captives were a major discussion items at the conference.

One group specifically addressed tax reform and how its code will affect captives and their entities, including tips on revisiting your strategy for sound tax efficiencies with your captive. A group of tax lawyers later closed out the conference with a presentation on the consequences of the Avrahami case, IRC modification due to tax reform, and tax provisions to consider state-by-state.

 

  1. Utilization

Due in part to emerging risks and markets, every captive needs a thorough review every now and then to ensure it’s having the maximum effect. This is what Spring’s Managing Partner, Karin Landry, presented on, along with Steve McElhinney and Brian Johnson. The group emphasized the need for regular captive refeasibility studies and highlighted new areas of opportunity for captives. Spring has led many projects involving captive optimization and refeasibility, and we have an effective, recommended process to help companies undergo such initiatives. From a needs assessment to new and emerging coverages, to restructuring your captive to allow for modifications, we are experts in finding a solution that’s right for you. You can learn more about our captive optimization practices and suggestions here.

Further, during “Expanding Your Captive Utilization”, a panel further expanded on the subject, pointing out the importance of regulatory changes, particularly when it comes to hospital-owned captives, in discovering and reassessing lines of coverage. Lastly, CICA attendees learned how to “spice up their captives” by exploring new benefits and advanced captive program placements that may now be an option due to changing tax and insurance landscapes. This session covered federal and state regulations, ERISA implications and more.

 

I hope you enjoyed my overview, whether or not you were able to make it to the CICA International Conference this year. I found it a valuable experience and particularly enjoyed meeting new people and visiting with existing clients and colleagues. As you can see, I wasn’t just in it for the Arizona craft beer tour that kicked off the three-day event. I was paying attention too!

Spring to Sponsor RIMS 2018 Annual Conference

RIMS 2018

Spring team at RIMS 2017

It’s been a busy conference season for us here at Spring, and it’s not over yet! We are excited to be sponsoring and exhibiting at this year’s RIMS (The Risk Management Society) annual conference in San Antonio, Texas from April 15th – 18th. Spring has been actively involved with the RIMS organization for over a decade and we are pleased to continue this partnership. Further, after having just endured three Nor’Easters in a two-week span, we are ready to pack our bags for warmer weather!

The event boasts an incredible turnout each year, and we’re sure this year will be no exception with an expected audience size of almost 3,000. This ties in well with the 2018 theme, “Go Big.” RIMS is one of the best events for risk managers to network, learn and share ideas. The four-day conference combines a good mix of work and play and brings an impressive list of talent when it comes to speakers and content. We’re particularly excited to see Jay Leno!

If you’re reading this, there’s a decent chance you will be at RIMS too, so please don’t forget to come say hi to us at booth #753. We’ll have giveaways, raffle prizes and more, and we’d love to chat with you!