Garth Flint, Beacon Pointe Co-Founder and Institutional Investment Consultant, recently attended the Captive Insurance Company Association (CICA) Conference held in Tucson, AZ. The theme of the conference was “Captives, Shaping the Future.” Keynote speaker, Cindy Solomon, CEO of CSA, Inc, began the conference with her presentation, “Creating a Culture of Courage: A New Leadership Challenge.” Two points Cindy made that resonated well with the audience were “innovation is a consistent need” and “the arrogance of today is to think what we did yesterday will work for tomorrow.”
One session that was especially noteworthy was “Best Practices for Forming and Operating a Captive.” Two experienced captive owners, one representing a single parent captive and the other a group captive, discussed the advantages of a captive, which include the following:
- Captives save money;
- The pricing of premiums stabilizes; and
- Captives illuminate costs.
Another popular session titled, “Captive History: Lessons Learned Through the Years,” focused on how captives have evolved over time and how the number of captives onshore now exceeds those offshore. It was also noted during the session that smaller captives now account for almost 40% of captive insurers, up from 24% in 2012. Hundreds of captives are in the non-profit, REITs, hospitals and healthcare space, and there is increasing competition among the domiciles. Technology, through InsturTech platforms, is rapidly transforming the captive insurance industry, and it will most likely benefit from Blockchain.
Beacon Pointe strives to stay current with news and trends in all of our clients’ industry sectors through gatherings as such CICA and others, and was honored to be in attendance among the many established captive leaders at this year’s CICA Conference.