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Special Section—2007 CICA International Conference CICA—AN EXPANDING LANDSCAPE The Captive Insurance Companies Association (CICA) has a long history of supporting the captive insurance industry. The association was originally formed in 1972 to foster the formation and development of captive insurance companies throughout the world. From the start, CICA established itself as a domicile-neutral group that was committed to the advancement of captives. Over the years, CICA has grown and evolved along with the captive industry. Today, the organization serves as an objective source for captive information by providing its members with the latest, most up-to-date viewpoints on captive insurance and risk retention groups. CICA’s primary educational programs, the annual International Conference and the Fall Seminar, are both considered by most captive professionals as key educational opportunities. During most of its history, CICA has functioned as a volunteer group with no paid employees. However, about three years ago CICA hired its first full-time employee, Dennis Harwick, to serve as president. Harwick has spent the past few years visiting with the membership and meeting many of the state regulators and domiciliary personnel. Additionally, he has established working relationships with many of the domicile-specific captive associations. This has helped CICA reinforce its domicile-neutral status. Changing vision Harwick notes that 2006 was a year of change for the association. Several new initiatives were instituted during 2006, with more planned for 2007. One of the most visible initiatives was CICA’s new Web site (www.CICAworld.com). But according to Harwick that is just the beginning, “because now our Web site has the capacity to grow with the organization.” For example, he said, “we are planning a significant upgrade to our ‘members only’ area.” Further, he reports that the new site “can now provide a technical platform that it had lacked before.” He thinks that this improvement was important for the overall growth of the association. Another new initiative that was introduced in 2006 was the establish-ment of a CICA Distinguished Service Award. The award was created, according to Harwick, “to recognize individuals or organizations that have made significant contributions to advancing the captive insurance industry.” Harwick stated that the first award was fittingly presented to D. Hugh Rosenbaum of London, United Kingdom. A new recipient will be announced soon. In addition to the Distinguished Service Award, Harwick says 2007 will see the inauguration of the CICA Outstanding Captive Award. The CICA Board of Directors will give this award to the captive owner that displays the best aspects of the captive industry. Over and above the recognition that will come with the award, it will allow CICA to collect all the details regarding the captive’s operation and then use this information to develop a case study. Harwick says that the case study would then be presented at CICA’s Fall Seminar. Harwick notes that 2006 was a year that went a long way to foster better relationships with the various state and offshore domiciles. He notes that a main goal has been and will be “to be a partner with the various domicile associations.” And this extends to the offshore domiciles as well as the expanding state jurisdictions. Harwick confirmed that he will continue to attend a number of state and international captive insurance association meetings throughout 2007. Additionally, CICA will begin to work closer with the state and international associations as well. An example of this increased activity is that CICA is joining a coalition that is led by Dan Labrie, president and CEO of the Housing Authority Insurance Group and the Vermont Captive Insurance Association. The coalition’s purpose is to try and encourage the expansion of the Risk Retention Act to include property coverage. Harwick believes that by combining forces with other groups, they can speak for a large portion of the industry on important matters such as the RRG expansion. CICA’s charge going forward is to best represent their members’ desires regarding the captive insurance industry. One evidence of this commitment to the members’ desires is the success of the 2006 Fall Seminar. Not only did the session set record attendance for the second straight year, it provided the attendees with both an overview of some of the most significant issues facing the captive industry and insight into many of the day-to-day challenges. A variety of topics were covered in this fast-paced seminar that offered the maximum exposure to the topics in a minimum amount of time. Many of the topics had been developed from members’ suggestions, Harwick indicated. Harwick also points out that you have only to look at this year’s International Conference agenda to see further influence of the member feedback. The organization has tried to tailor the sessions to match suggestions from the membership, and Harwick says he is quite excited about many of the topics. One that has caught his attention is the session about the World Trade Center captive. He says, “Here is a high-profile organization that has received more than its share of negative press.” He notes that most of this bad PR comes from the fact that people continue to file claims against the captive, as if they were a victim compensation organization when, in fact, they had nothing to do with that aspect of the claims. He says that the WTC Captive’s president will “come and tell her story.” When looking at 2007, Harwick says it should be a very illuminating year for captives and that “2007 will finally dispel the notion that captives work only in hard markets.” Today, he points out, “The captive phenomenon is so much better understood.” Even if the insurance market is soft, as it is expected to be in 2007, “people would rather have an ownership interest in their risk financing mechanism than renting via the traditional insurance market.” There are so many advantages to a captive—control, cost savings and coverage flexibility to name just a few. Captives make sense regardless of the insurance market conditions. “Captives allow corporations to master their own risk destiny,” says Harwick. Despite the looming soft market, he thinks, “Captives will continue to be formed, to grow and to expand in 2007.” Harwick believes that CICA is just beginning to make its mark on the captive industry and he sees 2007 as another important year in its growth. Despite the upcoming soft insurance market, Harwick is looking forward to seeing the CICA membership grow and succeed in coming years. “Our number one goal is to expand the CICA membership and we welcome all interested parties; however, this will be another year in which we make an aggressive attempt to attract captive owners,” Harwick indicates. Most of the programs that were instituted over the past few years, as well as many of the new programs, will be directed at captive owners. And he says, “We will work to expand our membership more globally in 2007.” * |
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