Market Overview

A.M. BestTV at VCIA: Traditionally Low Profile, the Captive Sector Draws Increasing Scrutiny


In this A.M.BestTV episode from the annual Vermont Captive
Insurance Association (VCIA) conference in Burlington, VT, executives
say captive insurers are drawing increased attention from regulators,
tax authorities and their own sponsors.

Click on
to view the entire program. For full video coverage of the VCIA 2018
conference, including exclusive executive interviews, visit

Rich Smith, president of the VCIA, said states are changing the way they
look at and value captives.

"States are looking at captives a potential way to grow their tax base,
which would be fine if they were treating captives fairly," said Smith.
"I think the problem is what we are seeing is that some states are
utilizing their insurance and tax laws in a way that really don't
comport to a growing, thriving captive industry."

Julie Boucher, U.S. captive practice leader at Marsh, noted the
increased scrutiny on captives coming from many fronts.

"There are more and more parties that want to become involved in how a
captive operates, what it does, what it is not allowed to do and to try
to render some type of judgment on captives," said Boucher.

Also appearing in this episode:

  • Carol Frey, vice president, Great American Insurance Group; and
  • Dan Towle, president, Captive Insurance Companies Association.

Other VCIA-related episodes of A.M.BestTV include:

  • Rated Captive Insurers See Strong Performance Compared With
    Commercial Peers:
    A.M. Best Associate Directors Susan Molineux and
    Fred Eslami say the performance of rated captive insurers once again
    outperformed their counterparts in the commercial casualty segment:
  • Rated Captives, RRGs Hold Their Own in Competitive Market:
    Highlights of an A.M. Best webinar on the captive insurance industry
    include participants discussing pricing trends, plentiful capacity how
    risk retention groups have fared in the competitive market:

A.M.BestTV covers exclusive A.M. Best information
and reports, targeted topics and key developments in the (re)insurance
industry every Monday, Wednesday and Friday. Sign up for alerts of
episodes at
A.M.BestTV episodes at

A.M. Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit
for more information

Copyright © 2018 by A.M. Best Company, Inc. and/or its

View Comments and Join the Discussion!