A.M. BestTV: Small-Scale Captives Take the Spotlight

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FOR IMMEDIATE RELEASE

OLDWICK - NOVEMBER 18, 2015 02:05 PM (EST)
This ^A.M.BestTV episode examines the Delaware Captive Insurance Association’s recent Fall Forum in Wilmington, DE, where regulators and insurance leaders said they expect continued growth in 831(b) captives, which are small-scale and also known as “enterprise risk captives.” Click on http://www.ambest.com/v.asp?v=dcia1115 to view the entire program.

“For the attendees it is an educational session that allows us to introduce to people who want to come in that we have a pretty good sense of what people in the market know,” said Peter Cavanaugh, president, Delaware Captive Insurance Association. “We like to present topics from an educational standpoint to show them what we believe is coming tomorrow.”

On 831(b) captives, federal legislators have proposed raising the premium threshold, while tax officials have targeted them for scrutiny.

“The biggest challenge facing enterprise risk captives today is education. There is a lot of pressure coming from Washington, D.C., particularly from the Internal Revenue Service, but also from within the industry,” said Jeff Simpson, attorney, Gordon Fournaris & Mammarella. “Many people do not really understand what these enterprise risk captives are and how they work; therefore, the challenge for us is to educate these people and help them understand.”

Other people that appear in this episode:

• Ryan Work, director, government relations, Self-Insurance Institute of America, Inc.;


• Karen Weldin-Stewart, insurance commissioner, Delaware Department of Insurance; and


• Steve Kinion, director, Delaware’s Bureau of Captive & Financial Insurance Products.

Full-length interviews are available as well. To see all the interviews, please visit http://www.ambest.tv/interviews.

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^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 http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv .

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