Industry associations offer an opportunity for members to network, weigh in on legislation or industry standards, and provide a public face for folks otherwise unfamiliar with the represented field. Such is also the case for the Delaware Captive Insurance Association (DCIA).
The association formed around the time the captive insurance market was beginning to re-energize following statute changes. “It was important to have an association represent that industry,” said DCIA President Peter Cavanaugh, who also serves as chief general counsel for the Nuclear Electric Insurance Limited, one of the state’s oldest captives.
The 47-member association comprises captive insurance participants as well as support service specialists ranging from accountants to attorneys. A volunteer board of directors leads the group, while the Calmetto Management Group, headquartered in South Carolina, oversees day-to-day operations. Board members are elected on an annual basis.
The association, said Cavanaugh, lends a cohesive voice to the industry, and, at the same time, helps keep members abreast of changes to federal and state laws. “We keep an eye on federal legislation insurance companies that are captives can tend to be looked at differently than traditional insurance companies,” he said.
The DCIA shares the following mission statement on its website:
“To serve as the unified voice of the captive insurance industry in Delaware and to support the development and growth of the industry through marketing, networking, education, and legislative initiatives.”
“The core intent is really to have people who are most impacted by changes in captive [insurance]. We look at the changes coming out of the captive bureau and will discuss [them],” Cavanaugh said, adding the association has an active legislative committee. Beyond a local voice, the association has lent support to the bureau’s position on proposed changes by the National Association of Insurance Commissioners and has joined the Clarity for Captive Insurers Coalition. Both are examples of the ways in which Delaware’s captive insurance industry can affect that change.
“We consider the DCIA to be our partner,” said Steve Kinion, director of Delaware’s Bureau of Captive and Financial Insurance Products, adding that the bureau looks to the association for reaction and discussion pertaining to decisions surrounding captive regulations. The bureau and the association meet monthly,
Kinion said, to discuss topics of mutual interest.
While the association board meets two to three times a year, a meeting of DCIA members occurs during the fall forum. This year’s forum is scheduled for Nov. 11 and 12 at the Chase Center on the Riverfront in Wilmington.
Speakers at this year’s forum will address topics of growing concern including captive cyber liability insurance and reputational risk. Speakers include experts in the field of tax law and leaders in the financial and insurance fields. Last year’s forum drew over 100 participants. The association is hoping for a robust turnout at this year’s forum as well.
Cavanaugh said the phenomenal growth within Delaware’s captive insurance industry has not presented challenges to the work the association does. Comparatively, he said, the association has had slow growth. But as a result, it has been able to successfully manage its positions to help companies participate in the industry. He remains proud of the state’s efforts.
“The growth in the state has been fantastic. I’m happy to see a healthy, vibrant industry in the state. It’s good for everybody,” he said.
For more information about the association, visit www.delawarecaptive.org. The site also includes
links to Delaware’s insurance department and the captive bureau, as well as registration information for November’s forum.