American Conference Institute's 4th Annual Forum on Captive Insurance

Conference Registration and Continental Breakfast for Attendees and Speakers

Welcoming Remarks by Conference Chairs

The Basics of Captives and Risk Retention Groups

• What is a captive?
• What types are there? What are the distinguishing features?
• Single-Parent Captive
• Group/Association
• Risk Retention Group
• Protected Cell Captives or Cell Captives
• With the number of states enacting laws that will allow for captive formation continually increasing, are there ways to avoid confusion by those interested in setting up a captive or re-domesticating?
• What are some of the points to consider when thinking about setting up a captive in an established domicile as opposed to a new domicile?
• Why form one and what are the benefits? When is it a good idea to think about a captive as opposed to traditional insurance?
• Best practices with respect to implementation and operation of a captive

Break

View from State Regulators and Officials on the Latest Issues in Today’s Environment

• How is each state promoting captives and how to segregate those efforts from regulation?
• Efforts that various states have made to become more flexible and attract formation of captives in their states
• Benefit of becoming a captive domicile
• With an increasing number of captives being formed, how are regulators shouldering their responsibility in terms of giving everything the scrutiny it requires?
• Regulators’ views on the upcoming issues

Break

State of the Captive Market: Insurance Hard and Soft Market Cycles and Forecasted Trends; Proliferation of US Captive Domiciles; Fronting Arrangements; Developments in Coverage, Claims, and Underwriting; and Industry Challenges Going Forward

• Insurance hard and soft market cycles and forecasted trends
• Captive growth continues despite the soft market
• What states are doing better than others in terms of attracting formation of captives and why?
• Latest on fronting arrangements
• Who are the issuing carriers/fronting companies for captives?
• Developments in coverage, claims, and underwriting
• Industry challenges going forward

Networking Lunch for Attendees and Speakers

Enterprise Risk Captives: The Past, the Present, and the Future

• The history of IRS Section 831(b) as a response to the insurance crisis of the 70s to the mid-80s – not just to help farm mutuals! A short history lesson in why this important provision of the Code was created and implemented;
• Tax and legislative updates with regard to small captives: A discussion of new tax court decisions and legislative developments in the last year through now;
• A discussion of best practices in the current climate of owning and managing a small captive: What are best insurance practices and why does every small captive need them? Best captive governance, claims, underwriting, and financial management practices;
• The changing role of the state insurance regulator with regard to small captives in the current climate;

Life Insurance and Captives: Special Purpose Vehicles for Life Insurers, Regulatory Concerns, and Impact of the Principle-Based Reserving on the Use of Captives

• XXX/AXXX reinsurance captives
• How have NAIC’s accreditation standards been developing?
• What is the likely impact of the principlebased reserving on the use of captives?
• What has been the industry response?
• Where is this issue going?

Break

Employee Benefit Captives: What Has Been the Success so far and How Do Captives Continue to Be Used to Insure Employee Benefits?

• A look back at some of the employee benefits captives
• What has been the experience so far?
• Did the companies realize the cost savings they originally set out to achieve?
• What do these companies intend to do next?
• How do captives continue to be used to insure employee benefits?
• What areas within employee benefits are most adaptable for captives?

Covering Cyber in a Captive Program: Does It Make Sense to Get a Captive to Help?

• Current state of the commercial coverage for cyber risk
• Major breach costs
• Can captives effectively/profitably write this type of business?
• How might a captive complement traditional policy?

Conference Adjourns to Day Two

Continental Breakfast

Tax Update: Recent Developments, Cases, and What’s in the Pipeline

• Recent tax developments
• Tax related litigation, actions, fines
• Rent-A-Center v. IRS
• Securitas Holdings v. IRS
• R.V.I. Guaranty Co. v. IRS
• Validus Reinsurance v. U.S.
• Cases to watch
• Avrahami v. Commissioner
• Feedback Ins. Co. v. Commissioner
• Future tax related issues
• Alien tax issues

New and Emerging Risks and Regions: Top Ten Global Risks and What Are Some of the New and Emerging Regions as well as Types of Coverages for Which Captives Are Being Used?

• What are the top ten global risks (e.g., cyber risks, drones, terrorism, fracking, sinkholes, Bakken oil)
• What are some of the innovative ways for using captives?
• New industries and/or associations using captives
• From which of the emerging risks might one benefit the most by writing into a captive and for which should one avoid doing the same?
• Where is the most growth in captives coming from?
• Latin America, China/Asia, Africa, India, Middle East, EU

Break

The Healthcare Captive: Insuring Medical Stop-Loss Through a Captive and What Has Been the Insurance Market as well as Medical Providers’ Response to the Changes Effected by the Affordable Care Act?

• Special considerations on formation and capitalization
• How are hospital captives and physician-oriented captives adapting to mass consolidation?
• How did the Affordable Care Act change circumstances?
• What is different from the physicians’ perspective?
• What is different from insurers’ perspective?
• Medical stop-loss insurance placed through a captive
• How to structure it? How does medical stop-loss plan work in comparison to a fully insured plan?
• Is this a true 3rd party risk? Is the insured a company or individual employees?
• How much risk should be placed in a captive?
• What is an appropriate premium for a captive to charge?

Continuing Trends in Compliance and Regulation: An Update on What Is Taking Place Nationally and Internationally from a Regulatory as well as from a Compliance Standpoint and Will Captive Insurance Companies Continue to Have Access to

• Increased scrutiny by NAIC
• Will NAIC be focusing on captive industry more generally?
• Credit for reinsurance
• Increased scrutiny by Federal Insurance Office
• International Association of Insurance Supervisors’ increasing interest in captive insurance
• What are the implications of international regulatory oversight on regulation of US captives?
• Membership in the Federal Home Loan Banking System
• What does this mean?
• Why are captive insurance companies interested in becoming members and why is there a concern about their doing it?

​Membership in the Federal Home Loan Banking System?

Captives in Run-Off or Insolvency

• What happens when a captive starts to fail?
• Where are the run-off captives?
• Moving liabilities into other captives or off the captives’ balance sheet
• Captives that are subject to formal US liquidation proceedings

Conference Ends