Author Archives: jeremy

Chemical Formulator Leverages Captive to Reduce Premiums at Appropriate Risk Level

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The last few years have been a challenge for businesses and their insurance brokers in trying to navigate what is considered a hard market for commercial insurance.

Several factors drive a hard market, but typically we see shrinking reinsurance capacity resulting in restricted limits and coverage and higher premiums. What was unusual with this hard market was that property was primarily the line of coverage that was leading the hard market.  As a result, companies faced huge increases in premium for the same limits and terms, if those could be obtained. Or firms were forced into a large deductible at reduced limits and coverage in order to keep their premium at the same level.

Premium to Rise 4X

One of our clients, a specialty chemical products formulator, faced such an undesirable situation at their property insurance renewal. The CFO of the company approached us seeking our advice on how they could use their Captive Insurance Company to help reduce the sting of their property insurance renewal during this hard market. They had received word from their broker that their property premium was going from just under $200,000 annually to approximately $800,000 for the same limits and coverage terms.

The Game Plan

We suggested that our client ask the broker to obtain large deductible options from carriers in the commercial market that would be willing to offer that type of program.  We would then have the Captive provide a Deductible Reimbursement Policy for the chosen deductible to fully cover the deductible amount or a significant portion of it.

The broker was successful in getting a carrier to underwrite the program with a $1,000,000 deductible, which was what the client desired.  The commercial carrier issued a policy for the full limits desired with a $1,000,000 deductible as the initial layer that the client would be responsible for.  The client saved approximately $441,000 in premium with this option.

Selecting Appropriate Risk Level

The client then decided that their risk tolerance was $250,000 per claim, so they requested that the Captive write the Deductible Reimbursement Policy at $1,000,000 with a $250,000 deductible.  In other words, the captive would cover the $750,000 excess of the $250,000 retained by the client on a per-claim basis.  The premium for the Deductible Reimbursement Policy was approximately $175,000, so the net premium savings was approximately $266,000.

The client was able to deduct the premium for the Deductible Reimbursement Policy, just like they would for any of their other commercial premiums.  Therefore, they were able to achieve significant premium savings while having the coverage they desired for their risk tolerance.  They would also be able to capture profits from the favorable loss experience of the Captive while maintaining the deductibility of the premiums paid.  We felt this was a positive outcome for the client, who was in a difficult situation; this case demonstrates how valuable a captive can be.

Sandra Fenters Named to List of Influential Women in Captive Insurance

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This feature ran in Captive International on June 16, 2024.

“I have had success, and therefore I believe I have an obligation to pass that on.”

Sandra Fenters is the president of Capterra Risk Solutions, working with entrepreneurs of closely held businesses, private equity firms, public entities, and not-for-profit organisations seeking to capture profits within their organisations by implementing solid risk management and loss prevention techniques.

The firm specialises in creating alternative risk transfer (ART) mechanisms and captive insurance companies. Fenters and her team provide captive management and consulting services for captive formations of all types including pure single parent, group arrangements, and association captives.

Fenters began her insurance career with a large international insurance company as a surety underwriter. Her experience spans multiple disciplines including surety, professional liability, commercial liability, and high net worth personal lines insurance. Fenters has authored numerous articles on captive insurance and was faculty for University of Delaware’s Captive Program. She is an active member of the Self-Insurance Institute of America and sits on committees specific to captives and advocacy.

Fenters is a graduate of Allegheny College and holds a BA in political science and a BA in English. She is also a graduate of the University of Pittsburgh Graduate School of Business Institute for Entrepreneurial Excellence, Fellows Class of 2010.

How did you get started in the captive insurance industry?

I started as an underwriter at Chubb Insurance and worked in Pittsburgh, Pennsylvania, and also in the headquarters in New Jersey. When I was in New Jersey I worked on reinsurance deals, which is how I became familiar with the captive insurance industry. I moved back to Pittsburgh to start a family and I have three children.

Then I worked for a brokerage firm headquartered in Pittsburgh. Eventually I decided to start my own insurance company, which is based in Utah, and start a captive management and consulting firm in Pittsburgh. Our clients are located all over the world, and we are in every domicile that is favourable to captive insurance.

Who inspired you or acted as a mentor?

I was mentored by the finest in the industry, which is very difficult to find nowadays. Looking globally for talent is key. I am very grateful for the mentors that were in my life, they became fathers to me.

What do you think deters people from entering the world of captives?

I see no limitations at all in terms of coming into the industry other than the willingness to understand the traditional terms and conditions of insurance and then applying the captive application to it.

How can mentorship and sponsorship programmes be designed to better support the career development of women?

That’s a tough question. I don’t think it’s about men or women—it’s about surrounding yourself with key talent across all states nationally and internationally, and I believe it’s about paying it forward. I have had success, and therefore I believe I have an obligation to pass that on.

What are your ambitions?

I’ve been able to establish my own insurance company as well as my own captive management consultant company. So in terms of ambition I’ve made my focus in life to be the best version of myself and the best mentor I can be to those I come in contact with.

July 16, 2024

I Am in Health Care: Every Day Is a Gamble

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Dr. Barbara McAneny, CEO and President of New Mexico Oncology Hematology Consultants, LTD, has long been an advocate for captives and their ability to offload risk while reducing commercial insurance companies’ premiums that vanish from her practice’s bottom line.

In the winter of 2024, her practice along with other medical practices faced a major challenge.  Due to a cyber breach involving one of the medical industry’s largest claims processors, Change Healthcare, her practice could not process their patient claims immediately.

Dr. McAneny had upcoming payroll looming for almost 300 employees as well as other payables, such as buying chemo drugs for their patients, with no incoming cash from Change Health. The inability to process claims and secure cash flow would impact her practice for 16 weeks.

Fortunately, Dr. McAneny and New Mexico Oncology Hematology Consultants, LTD operated a private captive insurance company, which had built up cash reserves to mitigate for such a risk. Dr. McAneny leveraged the captive by accessing its surplus in order to help mitigate further loss due to the cyber breach.

In addition, the medical practice has coverage through the captive insurer for additional expenses.

Not all medical practices had the ability to mitigate risk for such a major event; some practices needed to be sold as they were not able to insure the risk of the cyberattack and loss of receivables for several  months.

Dr McAneny also appreciates captives for their ability to mitigate the risk of punitive damages which traditional insurance does not cover. Since the captive was created in 2011, it has protected the practice from many risky events.

Dr McAneny started working with Capterra in 2021 after gaining an understanding of the true role and value of a Captive Manager.  Speaking of service providers, she continued, “There are ones that say why you can’t do it, the others find ways to provide solutions in a safe, compliant way.  I need someone to think with me and be creative in mitigating uninsured risks of my practice.”

Construction Case Study: ACS

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Captives Fill Gaps for Risk Mitigation for Construction Firm

Summary

Applied Construction Solutions (ACS), based in West Virginia, offers construction services to all sectors of the oil, gas, utility, midstream, and energy industries.

ACS was frustrated with higher premiums and gaps in its assorted risk-mitigation coverages-particularly in its employee benefits program.

Client Concern/Challenge

The rates from its traditional, fully-insured model continued to rise every year; the company believed its own claims were not high, but it had no visibility into the claims data. The firm found itself chasing lower rates annually by seeking competing programs from insurance carriers, with few benefits other than moderating the accelerating rate increases.

Solution

After research, ACS moved in 2022 to a self-insured group medical benefits captive that gave the team visibility into claims, group purchasing benefits, and the ability to share in insurance carrier profits through the size of the group.

After joining the medical benefits group captive, the ACS team began working with Capterra Risk on other ways to mitigate company risks.

ACS expanded into a single parent captive to cover risks around business interruption, cyber-attacks, excess pollution/environmental liability, deductible reimbursement, property, and crime/theft losses.

Results

Andria Alvarez Wymer, Director of Strategic Initiatives and Planning at ACS, says “in the first year of our single parent captive, we were able to receive reimbursement from a claim related to employee theft related to fraudulent invoices. Without the captive plan, ACS would have faced that loss.”

She adds that setting up an effective captive program is not simple and requires a skilled partner. “There is a huge learning curve,” says Ms. Alvarez Wymer. “The Capterra team is highly knowledgeable; they keep the program simple with ‘layman’s terms.’”

“Capterra is a great team with whom to work and are always available.”

Construction Case Study: Franjo Construction

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Avoiding Taking It on the Chin

Summary

Franjo Construction, a Pennsylvania-based general commercial contractor, faces a wide range of risks in its construction business. Claims erode profitability.

Challenge:

A big issue for construction firms is workmanship claims.  Joe Leonello, Jr, President of Franjo Construction, points that ‘we as an industry make a lot of mistakes.’ This can be costly.

However, there can be many limitations to coverage provided by commercial carriers. Because of these limitations, construction firms like Franjo must take on significant risk. Mr. Leonello points out that “when there are claims, our profit for the job fades.”

Capterra Solution:

Capterra put together a single-parent captive that provided Franjo with the comfort to mitigate the risks as well as allow the firm to know its claim history to better price jobs and reduce future losses.

Results/Benefits:

“We built a hotel where select panels flew off the building a number of years after its completion,” says Joe Leonello. “We assessed the problem and fixed the issue but had to write off a substantial sum five years after the construction ended. This presented a challenge to our profits.”

With its captive program, the claim was fully paid by the captive – preserving Franjo’s annual profits.

“Franjo would have taken it on the chin had it not been for the captive insurance program.”

Captive Case Studies: Captives Hold the Answer for Safety-Conscious Construction Firms

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This article ran in Captive Review, January, 2024

Here is a PDF copy of the article.

Three captive owners join Sandra Fenters of manager Capterra to share how captives have benefited their businesses.

In the face of ever-rising insurance premiums in the traditional market, more firms in the construction industry are turning to captive solutions.

In at least three cases,  Applied Construction Solutions (ACS), Franjo Construction, and the Massaro Construction Group, it has led to positive outcomes that have protected the businesses from sizable losses or generated a welcome new source of income.

All three partner with Capterra Risk Solutions, an alternative risk insurance consultant and licensed

captain manager, which works with many construction firms, as well as clients across many other industries.

Sandra Fenters is Capterra’s founder and president, and she points to the fact that the construction field is an industry class that has historically been rated by the traditional market as “highly risky” as to why many firms with lower claims look at captives.

“Firms in every industry deal with risk. Yet exposure to hazards is particularly significant to companies in the construction industry,“ Fenters says. “In many cases, the safer companies pay more to cover the risky, likely unsafe acts and resulting claims of the riskier companies.“

ACS Case Study

Andria Alvarez Wymer, Director of strategic initiatives and planning at ACS, is one who was frustrated with the increasing premiums for her construction firm’s healthcare programme.

The rates from its traditional, fully insured model continued to rise every year. The company, a general construction and transportation based in West Virginia, sensed that its claims were not high, but it had no visibility into the claims data.

As a result, the firm found itself chasing annually lower rates by seeking competing programmes from insurance carriers, with few benefits of moderating the accelerating rate increases.

These rising rates with no claim-driven explanation caused Alvarez Wymer to look to alternatives to better insure the health of her employees.

After research, ACS moved in 2022 to a self-insured group medical benefits captive that gave Wymer and her team visibility to claims, group, purchasing benefits, and the ability to share in insurance carrier profits through the size of the group.

“We now have nearly 2 years under our belt,” says Alvarez Wymer. “We are starting to see some big cost savings.”

High risk industry

Fenters highlights there are some obvious risks and exposures at a construction site to consider which explains why this industry is thought of as high risk.

These include the active use of equipment and tools; the moving of a large amount of raw materials and heavy building supplies; strenuous work by team members such as climbing and lifting; and extraordinary weather events causing business interruption.

In addition, it is very common for construction firms to engage external teams, such as suppliers, contractors, or subcontractors, who bring with them their own set of processes and risk.

“It does not take an actuary to spot the mini challenges of managing risk construction business,” Fenters says. “Consequently, many insurers will charge extra to cover for the perceived risk of the construction firms.”

Warranty

As well as site employee risk, construction firms need to warranty their projects

Joe Leonello, Jr, president of Franjo Construction, a general commercial contractor which employs 300 employees, says contractors make mistakes, and as a result, construction firms deal with the big issue of workmanship claims.

“Our firms need to take financial responsibility for these issues when they arise, says Leonello. “These uninsured claims – sometimes in the future – cause project profits to fade.”

Franjo started a single parent captive six years ago to manage such risks. He cites an example where a hotel that his firm built had an issue with panels blowing off the building several years after completion. Franjo remedied the situation. The captive covered the repair cost of $70,000.

“We would’ve taken it on the chin without the captive,” Leonello adds.

Leonello says the captive programme enables his firm to benefit from a better understanding of risks in general and the workmanship issue in particular.

“We gain risk management awareness,” he says. “We identify issues to reduce their likelihood of reoccurring. We can also price them clearly in future proposals – reducing the chances of a profit fade.”

Hard market

Fenters says that Alvarez Wymer’s and Leonello’s experiences of looking for ways to better understand claims, reduce expenses and mitigate risk are common among construction companies.

She says that the main use of captives and other alternative risk finance mechanisms by contractors began to increase with the admin of the hard insurance market cycle in the early 2000s.

The hard market with rising premiums, reductions and capacity, and tighter restrictions in coverage has continued, she adds.

To illustrate this she points to Marsh’s quarter 3, 2023 Global Insurance Market Index showing the composite pricing rising for the 24th consecutive quarter – the longest run of increases since the inception of the index in 2022.

Captive options

Most construction firms will either join a group captive or set up their own single parent captive, according to Fenters.

The Massaro Construction Group, a Pittsburgh-based general contractor, was looking in 2009 to boost its buying power on its nearly $1 million expenditure of annual commercial insurance premiums.

Its search led them to join a group captive which places $150 million annually in coverage, enabling its 120 group members to secure lower premiums and broader coverage.

David Massaro, president of Massaro Properties, also appreciates the equity members build up over time as a member in the captive.

As the captive closes out prior years of claims and risk, members are eligible for distributions based upon their equity in the captive.

“We’ve had distributions for 13 to 14 years of membership,” says Massaro.

Leonello says his firm seeks to join a group captive as well as to better cover more of their traditional policies.

Additional captives

After joining the medical benefits group captive, Alvarez Wymer and her team considered ways other ways to mitigate company risk.

The firm expanded into a single parent captive to cover risks around business interruption, cyber attacks, excess pollution/environmental liability, violence, property, and crime/theft losses.

“In the first year of our single parent captive, we were able to receive reimbursement for a claim related to employee theft related to fraudulent invoices,” she says. “Without the captive plan, ACS would have faced that loss.”

In addition, ACS also is a member of a second group captive that covers statutory traditional coverage, such as workers compensation, general liability, and auto coverages.

Fenters says that the positive experiences of these three captive owners illustrate the increasingly important role captive insurance plays for mitigation of construction industry, as an alternative to commercial insurance.”

“Construction’s inherent risks, any of which are not adequately covered by commercial policies, have led many principles to create single parent captives or to join group captives,” she adds.

This article ran in Captive Review, January, 2024 (paid subscription required to view article on Captive Review)

Learning and Lifting with Alyssa

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This Emerging Talent Column ran in the January, 2024 edition of Captive Insurance Times. 

Alyssa Preidt of Capterra Risk Solutions speaks to Frances Jones about her experiences and influences in the industry

How has your previous experience prepared you for your current role as underwriting and claims manager?

When I accepted my first position in the captive industry, I was fresh out of college. I had a lot to learn that couldn’t come from a textbook, but I was eager.

My first role was as an underwriting associate. Since then, I’ve worked for a managing general agent and a couple of other captive firms.

These experiences prepared me in the best possible way for my current role. I learned from several teachers, who have global knowledge of both the captive and commercial insurance worlds. They have given me tools to understand how commercial and captive insurance can work together, determine sound underwriting principles, optimise meeting clients’ needs and properly adjudicate claims.

How did you end up in the captive industry?

When I graduated in May 2018, my former professor, Thomas Marshall, gave me a call notifying me that an individual from the industry was looking for a recommendation for a college graduate. He gave them my name and directed me to some resources to research more about captives.

Although we were given a high-level overview of captives in our college course material, it was not a main focus of the curriculum. After reading more, I realised that this unique industry intrigued me. Before I knew it, I was travelling down to South Carolina, spending a weekend interviewing and reading the company’s book on captives. I was offered the position shortly thereafter.

From your experience, what would you say are the key benefits of working in this industry?

The greatest benefit is the opportunity to meet entrepreneurs and executives from various different backgrounds, life experiences and industries. This is something that we get to participate in that is rarely replicated in other industries. In the captive world, I hear success stories from business owners from every walk of life.

Another benefit is the opportunity to customise an insurance programme to protect each business’ risks and assets, enabling me to think critically about specific needs and risks for different industries and businesses within those sectors.

Who have been your influences in the captive space?

There are too many influences to name them all, but there are a few in particular I’d like to thank — firstly my mentor, Alan Morris. He noticed a spark of potential in me and actively chose to develop, strengthen and foster what he saw. He continues to be a source of great inspiration to me.

Secondly, Jeff Ellington, senior vice president at Capterra Risk Solutions, has been a great teacher. He is the embodiment of an open-door policy. Jeff takes time to educate and challenge me when I need to consider a different perspective.

Lastly, Sandra Fenters, Capterra’s CEO and president, whose reputation precedes her. Since May 2022, I’ve had the pleasure to work for her. She is passionate about teaching other women in the industry and never misses an opportunity to mentor. Her ability to tell stories and connect with her clients is unparalleled.

What are your aspirations for your future career in the industry?

I’ve learned that I possess the skill of innovation, having worked on major initiatives to improve processes and systems at captive management firms. In the industry, I aim to make the processes, systems, and ways we do things simpler and more efficient. I want to continue pushing the industry forward.

What advice do you have for someone considering a role in captive insurance?

Be proactive. Put systems in place for renewal season. If you don’t have a process in place, it’s likely you will be scattered. Be prepared, work ahead and do the one extra task a day that will add up to major results by the end of the renewal season. Treat your colleagues and clients like family. Building a rapport with everyone you interact with can go a long way — there is never a situation where having a level of understanding, trust and empathy for your clients and colleagues will not serve you well.

Don’t sleep on opportunities to make improvements during your down season, the nine to 10-month period between renewals. Build a strong foundation in this season by making continual improvements. Ask questions, research, and push yourself outside of your comfort zone. You can learn about anything now on YouTube, even contractual liability!

“I became associated with Alyssa in 2018 at a South Carolina-based firm, Hamilton Captive Management. There, she led and participated in major initiatives where she consistently demonstrated strong technical knowledge of (re)insurance practices, understanding of risk management principles and the ability to effectively apply them to a broad range of functions. Additionally, the capacity to develop and effectively lead major initiatives and projects, to strategise, develop sound and effective insurance programmes, and to effectively communicate legal and regulatory issues to a wide range of internal and external audiences.

“Alyssa’s industry knowledge and her ability to provide guidance over a wide range of insurance initiatives and functions far exceed those common for her level of experience. They speak to her commitment to excellence as a professional and strong desire to add value on an ongoing basis.”

Alan Morris, ASA, ACAS, MAAA Consulting actuary and risk consultant Former chief actuary and risk officer for the Cayman Islands Monetary Authority

About Alyssa

Alyssa was raised in Belmont, North Carolina, among her family of seven. She has a passion for crossfit, is a crossfit coach and has transitioned to competitive weightlifting. In her spare time, she enjoys learning Hebrew and the piano, reading, gardening, playing with her dog Harley, and doing DIY home projects.

Alyssa has a bachelor’s degree in finance with a concentration in risk management and insurance from the Charlotte-based University of North Carolina.

Starting her career as a risk analyst at Hamilton Captive Management, she has previously held underwriting positions at Atlas Insurance Management and in the property and casualty insurance division of AmWINS Group.

Bill Eleamos Added to FORTY Under 40 List

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Here is Bill’s summary from Captive International’s FORTY Under 40 Finalists.

BILL ELEAMOS

Vice President of Finance, Capterra Risk Solutions

“The captives industry lets you work with some of the brightest professionals.”

Bill Eleamos started his career as an accountant at a wealth management firm in 2010. While there he was promoted to senior accountant in 2011 and obtained his graduate degree and MBA. He then found his way to Capterra in 2015, where he was the fiscal officer and accountant for the captive clients under management.

In 2019, Eleamos was promoted to controller where he maintained all prior responsibilities and added the responsibilities of maintaining and overseeing the accounting and overall operation of Capterra. In January 2023, he was promoted to vice president of finance and brought on as a minority partner of Capterra.

Eleamos was described as a very experienced captive financial professional, being very organised and detail-oriented, along with being friendly and easy to communicate. He is said to do a great job to ensure his clients are in compliance with the domicile’s state laws and regulations.

Here he explains why the captive insurance industry is rewarding to be in, why people should join it and how he feels it will evolve over the near term.

Do you feel that the captive insurance industry is a rewarding sector to work in?

The industry is rewarding from the aspect of assisting businesses of all sizes and industries. The captive insurance space is a useful tool that can benefit many types of businesses. One week I may be reviewing a programme for a mid-size contractor in Florida, and the following week, implementing a programme for a large manufacturer in Pennsylvania. The ability to touch and help businesses all of sizes and industries is one of the most rewarding effects of working in the captives sector.

Would you recommend the captive insurance industry to young people as a future career path?

I believe it is. The captives industry lets you work with some of the brightest professionals all coming together for the common goal of implementing an effective risk management solution. By working daily with the likes of actuaries, attorneys, CPAs, insurance experts, business owners, CFOs, risk managers, etc, you are working with the best of the best and each day you are absorbing that knowledge and making that individual a well-rounded professional.

How do you feel that the captive insurance industry will evolve?

The captives industry will undoubtedly continue to evolve and innovate. That is the basis of captive insurance and how we differ from the traditional insurance market. The captive industry listens to the needs and actual risks of the insured businesses and finds solutions unavailable in any other market.

Do you think that your long-term future remains in the captive insurance industry?

Yes. With my eight-and-a-half years in the industry and obtaining my ACI designation, I have obtained experience and knowledge that have provided a solid foundation in the captives space.

Our North Carolina Team and Insights from the NCCIA Conference

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By Alyssa Preidt

Our Newest Team Members: Jeff and Alyssa

Jeff and I would like to say that it is our great pleasure to be Capterra Risk’s North Carolina team.

  • Jeff Ellington, Senior Vice President, has been in the insurance industry for over 35 years and has a wealth of knowledge and experience. He began working in the captive industry over 11 years ago and has been very active in the industry ever since.
  • I, Alyssa Preidt, Underwriting and Claims Manager, have been involved in the insurance industry for 5 years, almost to the day. I received an offer to work for a captive management company right out of college and was so fascinated by the concept of captives that I couldn’t turn it down.

Jeff and I began working together two years ago, also, almost to the day. I’ve had many mentors and leaders in my career to whom I am thankful; but I am constantly humbled by my opportunity to learn from Jeff, an individual who has an incredible amount of knowledge and willingness to pass along his insights to the next generation of insurance professionals like myself.

Update from The North Carolina Captive Insurance Association Conference

The Capterra Team attends numerous conferences every year. One of our favorites is the North Carolina Captive Insurance Association (NCCIA) Conference, which was held this year from May 7th-10th.  Afterward, Jeff and I sat down to debrief and share our thoughts on the Conference

NCCIA is a time when captive managers, partners, service providers, and owners come together to support North Carolina as a domicile, learn from other industry professionals, and network with each other to brainstorm solutions for their clients.

The conference begins with an opening ceremony dedicated to highlighting successes and providing updates from the North Carolina Department of Insurance (NCDOI) on the current economic market and how it may be affecting captive performance.

North Carolina is the 6th largest domicile in the world and was launched in 2013

During this opening ceremony, we were fascinated to learn that North Carolina:

  • Currently has $1.3 billion dollars of written premium between all licensed North Carolina captives.
  • Has quickly grown to become the 4th largest domicile in the United States and 6th largest in the world.

North Carolina first implemented legislation in October 2013 to become a captive domicile and launched its first conference in 2014; the growth North Carolina has experienced in such a short period of time is a testament to all the hard work of the NCDOI.

 

 

 

 

 

 

 

 

Founder Sandra Fenters with Mike Causey, the North Carolina Commissioner of Insurance.

Partner Bill Eleamos Participates on Panel

Our very own VP of Finance, Bill Eleamos, presented as a member of a panel on Navigating Conflict Between Owners and Managers.

A few key takeaways from the panel on how to avoid conflict with captive owners and managers and run an efficient captive insurance company were as follows:

  • Implement claims procedures with each captive insurance company at inception. Adhere to procedures for reporting, managing, and reimbursement of claims.
  • Owners want certainty. Provide consistent and clear communication between the captive manager, insurance regulator, insurer, and insured.  Eliminate unknowns/surprises.
  • Conduct effective board meetings

The panel also included Bill Eleamos, Alex Webb, Managing Partner of Webb & Morton, PLLC, Debbie Walker, Consultant, and Andrew Rennick, Partner at Womble Bond Dickinson (US) LLP.

Insights from Other Sessions

A few of the additional sessions that Jeff and I found valuable included:

  • The Medical Impact of COVID-19 and Captive Risk Management
    • There has been a 70% increase in interest to insure Gap or Medical Stop Loss Insurance in captives due to catastrophic claims, drugs, gene therapy, claim frequency, and size
    • 51% of people reported increased captive utilization due to the impact of COVID-19
  • Tailor-Made Insurance
    • Parametric Insurance is beginning to be used for some weather-related risks, but could have other purposes such as strike, mechanical failure, or civil authority risks
    • The claims process can be clearer and more streamlined
  • When is an RRG the “Right” Solution
    • Risk Retention Groups (RRGs) have proven to be great solution for the following groups: Medical Professional Liability (Physicians, Senior Care), Specialty Auto (Trucking, Livery), and Specialty General Liability (Contractors, Manufacturers)
    • RRGs are great if the following factors are present:
      • Reinsurance
      • Sufficient Levels of Capitalization
      • Strong, Core Group of Participants
      • Premium Growth/Critical Mass
      • Ability to Maintain Lower Expense Ratios
      • Strong Relationships with Regulatory Agencies
    • Update on Federal and State Tax Issues and Significance of Exposure Units in Analyzing Risk Distribution
      • New regulations will be an “upgrade” from Notice 2016-66 and make it obsolete
      • New regulations break microcaptives into two categories: “listed transaction” or “transaction of interest”
      • The panel believes there are strategic reasons to comment and testify including make the industry’s positions known, and to question the validity of the proposed regulations
      • The panel did not recommend submitting a unified, collective opinion piece on behalf of the industry, but did recommend that comments and feedback be sent from various, separate entities with varying opinions and commentary.
      • June 12, 2023 is the deadline to submit electronic or written comments on the proposed regulations

In attendance at this year’s Conference, we saw many captive owners. I was thoroughly impressed by captive owners who were eager to learn more about their captive and the captive industry as a whole. We would like to encourage all our clients, especially those domiciled in North Carolina, to consider joining us next year for the NCCIA 2024 conference in Ashville, NC.

Capterra Risk Names Bill Eleamos as Partner

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Promoted to Vice President of Finance

Feb 22, 2023 (Pittsburgh, PA) – Capterra Risk Solutions, LLC, a captive management and consulting firm offering an unparalleled level of risk management and underwriting expertise, has named Bill Eleamos as Partner and Vice President of Finance.

Mr. Eleamos has worked at Capterra for over 7 years. He joined as a Fiscal Officer in 2015 and was promoted to Controller in 2019.  Sandra Fenters, Capterra Risk Solutions President and Founder, says

“Bill has contributed much to the recent growth of the firm with his strong fiscal skills and outstanding organization. He is embracing a larger leadership role with serving our clients and managing our partner resources.”

Bill adds “I am extremely grateful for this promotion.  This firm has been a second family to me.  I will embrace the new challenges and responsibilities that come with this opportunity, and I look forward to help steer the future growth of Capterra.”

Bill worked for Mellon Capital before joining Capterra. He holds a MBA from California University of Pennsylvania and also obtained his Associate in Captive Insurance (ACI) designation from the International Center of Captive Insurance Education.

The new Vice President of Finance works from the firm’s Pittsburgh headquarters. Capterra also operates a Charlotte, NC office.