Article

The South Carolina Captive Insurance Association (SCCIA) hosted its annual conference from September 17-19, 2024, in the historic city of Charleston, SC. This event continues to be a cornerstone in the captive insurance industry, drawing top professionals from across the nation and beyond. Captives.Insure was represented by Joe McDonald, the former Director of Captives for the South Carolina Department of Insurance.

Educational Initiatives

The conference kicked off with the SCCIA Captive Academy, an interactive program designed to introduce newcomers to the intricacies of captive insurance. This roundtable format covered a comprehensive range of topics, from licensing and captive basics to more advanced subjects like captive runoff and dissolution.

Regulatory Insights

A key feature of the conference was the Domicile and Regulatory Update session. This segment provided attendees with a thorough review of the year's legislative session and offered insights into proposed captive legislation. Notable speakers included: Michael Wise, Director of the SCDOI; Ryan Basnett, Chief Financial Analyst at the SDOI; and several prominent members of the SC legislature.

These officials discussed the current insurance climate, with a particular focus on captives. They also introduced the regulatory captive team at the SCDOI and shared their perspectives on regulatory successes and challenges.

Diverse Session Topics

The conference agenda covered a wide array of subjects crucial to the captive insurance industry:

- Leveraging captive company success for future uncertainty

- Establishing proper captive governance

- Enhancing emotional intelligence in the workplace

- Communicating captive value to key stakeholders

- Recent developments in captive taxation

- Strategies for improving board meeting engagement

- Economic implications of the upcoming U.S. presidential election

These sessions provided attendees with valuable insights and practical strategies for navigating the complex landscape of captive insurance.

South Carolina’s Status as a Domicile

South Carolina continues to maintain its position as one of the top five onshore domiciles for captive insurance. This status is attributed to several factors:

1. A mature and stable regulatory environment

2. A high concentration of experienced service providers throughout the state

3. The ongoing efforts of organizations like SCCIA in promoting and developing the industry

Key Takeaways

The conference yielded several important insights for industry professionals:

1. SCCIA's Crucial Role: The association remains fundamental in maintaining South Carolina's status as a top-tier captive domicile.

2. Legislative Progress: While proposed captive legislation didn't pass this year, there's optimism about its passage in the coming year, given its well-crafted and meaningful nature.

3. Regulatory Stability: Despite significant changes in the regulatory staff at the SCDOI, Director Wise and the captive team expressed confidence in maintaining a stable and fertile regulatory environment through the autonomous captive division.

4. Market Trends: Attendees gained valuable insights into changes in captive coverage lines, including increases and decreases in various areas.

5. Strategic Importance: The conference emphasized the value of regular strategic reviews and program evaluations from objective, independent service providers.

6. Guiding Principles: Establishing and consistently referencing "guiding principles" throughout a captive's lifecycle was highlighted as a crucial practice.

7. Market Health: The captive market continues to show robust health, with steadily increasing interest in captives remaining a major topic of discussion.

8. Global Significance: The conference reinforced the important role captives play in the global insurance and reinsurance markets.

In conclusion, the 2024 SCCIA conference once again proved to be an invaluable platform for knowledge sharing, networking, and strategic planning in the captive insurance industry. As the sector continues to evolve and face new challenges, events like this play a crucial role in shaping the future of captive insurance and maintaining South Carolina's position as a leading domicile.

Contact C.I. to find out more about captives and captive domiciles