State and federal regulatory issues are still the number one concern for captive managers, according to the Captive Insurance Companies Association’s (CICA) most recent market survey.
CICA board member Mike Mead, who chaired a panel discussion on the survey results at the CICA International Conference in Scottsdale, Arizona, warned that these issues are guaranteed “to grow exponentially, every year”.
Keeping up with regulatory changes is certain to continue costing captive managers time and money, according to Mead, who claimed that they should strive to research changes as rigourously as possible, in order to stay on top of regulatory requirements.
The prominence of fronting carriers was also raised by survey respondents, as they are more plentiful than ever.
According to Mead, their rise in prominence brings certain benefits to the industry, but its was claimed that they still struggle to accommodate group captives, such as those covered by the 831(b) election in the US.
Sean Rider of the global captive practice at Willis, Joel Chansky of Milliman, Ryan Ralston of Spring Consulting Group and Sara Pucini of Advocate Healthcare also participated on the panel.
