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