VCIA Pres. Sees Captive Success

By Caroline McDonald

NU Online News Service, Aug. 1, 10:22 a.m.EST?Member education and legislation will be the twofocuses of the Vermont Captive Insurance Association in the comingyear, according to the group's new president.

Molly Lambert, who replaced Lisa Ventriss in May, made hercomments in a recent interview with National Underwriter.She arrives at her job during a boom time for the organization,which is seeing a jump in numbers of new captive insurers in thestate and the possibility of the largest conference attendanceever.

Ms. Lambert faces her first VCIA conference in mid-August. Shesaid the state's captive activity "is very busy. This year will bea record-setting year."

On an average over the 21 years Vermont has had captivelegislation, the state has licensed about 25 captives per year, shesaid. "In the first half of 2002 we've already licensed 26 newcaptives, and the fourth quarter is normally the busiestquarter."

She continued that "the industry is very busy and those familiarwith the industry know why. It's because the commercial insurancemarket has hardened significantly." Consequently captives arebecoming "much more attractive to a variety of differentcompanies."

VCIA, she said, is "very well positioned to serve" its more than300 members.

The association's significant rise in membership, from 270members just a few months ago to 320, is "another indication of thevitality of this industry," she noted.

During the coming year, she said, the association has two maingoals. One is a focus on education.

"It is critically important that captive industry participantsremain very well informed" about changing laws, changing uses ofcaptives, and new industry trends. "Education at all levels isgoing to be a key part of VCIA's activities," Ms. Lambert said.

The conference format includes both basic seminars andaccelerated courses.

The other emphasis, she said, is legislation, both state andfederal. One focus, she said, is the effort to expand the federalRisk Retention Act, which would allow captives to expand the typesof insurance they can write, excluding workers' compensation.

Ms. Lambert said the association is "monitoring the discussionat the federal level and is working with its partners in Vermont'sstate government on some possible updates to the captivestatute."

On a state level, she said, VCIA is working in partnership withthe state government to review and update captive statutes inVermont.

"One thing Vermont has done very well, which has kept it at thehead of the game in terms of domestic domiciles, is they haveconstantly reviewed and revised captive statues," sheexplained.

This has been possible because "there is great receptivity onthe side of state regulators to constantly revise and improveVermont's captive statutes to stay ahead of the curve," shesaid.