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The

Captive Insurance J O U R N A L

3rd Quarter 2013

I N

T H I S

I S S U E

Page 2 President’s Message

Page 3-7 2013 SCCIA Convention Highlights Wild Dunes, Isle of Palms

Page 8-9 Ray Farmer Interview

Page 10 South Carolina is on the Move!

SCCIA Member Spotlight Ann West was recently named Captive Person of the Year during the SCCIA 14th Annual Executive Educational Conference. Although she is this year’s recipient her contributions and dedication to the captive community in South Carolina are long standing. Ann began working on captives by managing the Alternative Risk Transfer initiative while she was at Gamble Givens and Moody, a Certified Public Accounting firm headquartered in South Carolina. Her impact within the industry deepened locally in May of 2005 when she joined HSBC Insurance Management to manage their state office. In June of 2011, Kane (USA), Inc. bought HSBC’s captive management practice and one year later she was named head of US operations for Kane. Throughout her career, Ann has worked tirelessly to expand and ensure the success of the captive insurance industry in South Carolina. In addition to her role at Kane, Ann has served in many leadership roles within the SCCIA. During her tenure there were many advances in the association’s activities. One of her primary contributions was the development of the Captive Insurance Political Action Committee (CIPAC). She recognized that in order for the captive initiative to be successful, we would need the support of the state legislators. She was instrumental in setting up and obtaining funding for the CIPAC which allowed the domicile to raise money to begin the process of educating the state legislators on the importance of the captive initiative. This initiative is on-going and continues to gain strength.

More About Ann Ann West has a Bachelor of Science in Business Administration from the College of Charleston and is a licensed CPA in South Carolina. She is a member of the American Institute of Certified Public Accountants and the SC Association of Public Accountants. She has also attained the Associate in Captive Insurance designation from the International Center for Captive Education and the Chartered Global Management Accountant designation through the Chartered Institute of Management Accountants. 2006 Strategic Planning Committee Member integral to improving the structure of the SCCIA and future strategy for the organization.

2007 Participated in a Critical Issues Forum which continued to make recommendations to grow the captive industry.

2008 Became the first woman in South Carolina appointed to the Board of Directors for the SCCIA.

2009 Developed a new strategic plan for the SCCIA with past President of the Board, John Weitzel.

2010 Elected President of the SCCIA Board of Directors and continued the implementation on the strategic plan that was developed in 2009.

2011 Began her role as Chairman of the SCCIA Board of Directors

2013 Elected Captive Person of the Year at the SCCIA 14th Annual Executive Educational Conference.


The Captive Insurance Journal Third Quarter, 2013

President’s

Message Managing Editor Cameron Yost Design/Graphics Florence Design, Inc. Editorial and Advertising Office PO Box 1763 Columbia, SC 29202 855-CAPTIVE

SOUTH CAROLINA CAPTIVE INSURANCE ASSOCIATION 2012 DIRECTORS & OFFICERS Chairman of the Board Thomas A. Brumgardt Nelson Mullins Riley & Scarborough, LLP President Andrea Bartlett Bartlett Actuarial Group, Ltd. Treasurer/Corporate Secretary Chris Stormer Bauknight Pietras & Stormer, PA Directors Randy Collins Koppers Assurance, Inc. Michael Coulter Aon Insurance Managers (USA) Gavin Foggon Marsh Management Services Inc. Robert Schmid Energy Insurance Services Executive Director Cameron Yost

Š Copyright 2013 SC Captive Insurance Association

There is a lot of exciting news surrounding the South Carolina domicile in 2013. One of the most exciting occurrences was that the Department of Insurance has hired Jay Branum as our new Captive Administrator. Jay comes to SC with a wealth of insurance experience. I have already talked to him several times and he brings a great deal of enthusiasm, new ideas and a commitment to growing the captive insurance industry in SC. The second exciting event this year was our incredibly successful convention at Wild Dunes Resort at the Isle of Palms. 88.4% of people who responded to our survey rated the conference location at Wild Dunes as Excellent or Good. 94.1% rated their overall experience at our 14th conference as Good or Excellent. Due in part to this positive feedback, we will be going back to Wild Dunes in 2014. The few concerns that attendees had with lack of transportation to downtown Charleston and, in some cases, spotty cell phone service, will be corrected next year. Our plan is to run shuttles during the day downtown to accommodate people who wish to shop or sightsee. AT&T has just put up a new cell phone tower on the island which should improve reception for many users. Our plan is then to return to downtown Charleston for our convention in 2015. And finally, the SCCIA Education Committee led by Liz Davis, will be ending our year on a high note by offering the first of a series of webinars to a nationwide audience. The topic is a discussion of two court decisions (tax related) and also includes a discussion on business risk vs insurance risk. I want to end my term as President of the SCCIA with a big thanks to the SCCIA Board (Tom Brumgardt, Randy Collins, 2

Mike Coulter, Gavin Foggon, and Chris Stormer) for all of their hard work this year. I would also like to offer a special thanks to Tom Brumgardt who served as Chairman of the SCCIA Board in 2013 and will be rotating off after four years of service and to Randy Collins who offered wise and sage counsel to the Board for the past three years and will also be rotating off. I also want to thank our committees for their fine work this year. The Conference Committee was led by Bryan Hudson, the Marketing Committee by Linda Danna, the Membership Committee by Laura Rodrigo, the Education Committee by Liz Flood Davis and the Legislative Committee by Steve Dyer. And finally I want to acknowledge Andi Rawl from Capital Consultants who served as Director of our association for the past year and to welcome Cameron Yost who is our new Director. Best wishes to all.

Andrea Bartlett President, SCCIA


The Captive Insurance Journal Third Quarter, 2013

2013 Convention at Wild Dunes

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The Captive Insurance Journal Third Quarter, 2013

South Carolina 2013:

A Captivating View

DONATE NOW

As part of the SCCIA’s legislative efforts moving forward, CIPAC (Captive Insurance Political Action Committee) was formed in order to be collectively represented as an industry as it relates to legislative matters. For more information and Pledge Form go to our website www.sccia.org or contact the Association Office at 1-855-CAPTIVE.

Donate online at www.sccia.org. 4


The Captive Insurance Journal Third Quarter, 2013

South Carolina 2013:

A Captivating View

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The Captive Insurance Journal Third Quarter, 2013

South Carolina 2013:

A Captivating View

Golf Tournament A Special Thank You to Our Sponsors Closest To the Pin Sponsor:

Hole Sponsors:

Bartlett Actuarial Avanti Insurance Company Energy Insurance Services GPW and Associates Island RE, Inc. IU Health RRG, Inc. Kane (USA), Inc. KPMG

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Performa Limited (US), LLC Physicians Proactive Protection RRG Red Re, Inc. Silverson, Pareres & Lombardi, LLP The Friendly Society Restored


The Captive Insurance Journal Third Quarter, 2013

South Carolina 2013:

A Captivating View

Convention Committee Chair, Bryan Hudson

Education Committee Chair, Liz Davis

Marketing Committee Chair, Linda Danna

Legislative Committee Chair, Steve Dyer

Membership Committee Chair, Laura Rodrigo 7


The Captive Insurance Journal Third Quarter, 2013

An Interview with Director,

RAY FARMER

of my service, I have served for over thirty years on the Board of Directors of the Georgia Arson Control Program, an organization aiding fire fighters and prosecutors combating arson. I am a member of the State Bar of Georgia and a member of the Tort and Insurance Practice section as well as the Workers’ Compensation section. I am a native of Atlanta and my wife, Gayle, and I have two children and five grandchildren. 2. What do you consider to be the most important issue facing the captive insurance industry today?

RAY FARMER, DIRECTOR We recently were able to catch a few minutes with our SC Director of Insurance, Ray Farmer and asked him to share a bit about his career and first year as director. 1. Can you tell us a little bit about your background? I was appointed by Governor Nikki Haley to serve as Director for the South Carolina Department of Insurance November 13, 2012. With more than forty years experience, I received my degree in Insurance from the University of Southern Mississippi and earned my law degree from Atlanta’s John Marshall Law School. I served as the Deputy Insurance Commissioner of the Enforcement Division for the Georgia Department of Insurance and more recently Vice President for the American Insurance Association. As a part

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Certain aspects of the captive industry are receiving closer scrutiny from regulators, which is probably a good thing. I would hope we would refrain from painting all captives with a broad brush. South Carolina has taken great pride in approving transactions that are financially sound and sensible. I would hope all regulators would proceed with caution. 3. What do you feel is the main obstacle preventing South Carolina from overtaking the larger domiciles? What is the primary reason some of the other domiciles have passed South Carolina in the last year or so? There are no obstacles holding our state back from growing the captive industry. It is not my goal, necessarily, for South Carolina to overtake the larger domiciles. It is not about the numbers for us. We do, however, want to be known as a business friendly domicile with “common sense” regulation.


The Captive Insurance Journal Third Quarter, 2013

An Interview with Director,

RAY FARMER

4. What plans do you have to improve the exam process for captives and RRGs? We have made great strides in improving our examination process for our captives. I am extremely concerned about the high cost of regulation. One way to continue to hold down costs, in my opinion, is to have more internal examiners. I’ve noticed over the years that regulators are able to better control exam costs with the use of internal examiners. 5. In what area does the SCDOI excel in licensing and regulating captives? Our regulatory processes have continued to improve. Application processing times are down to 30 days, or less, and properly completed business plan changes can be done in as little as one business day.

(continued)

Now, for some more casual, personal questions. Feel free to select as few or as many as you like to respond to, or provide your own. 8. What has been your greatest accomplishment? The greatest accomplishment is shared with my wife, Gayle–our two great children and even better five grandchildren. Grandchildren are always an improvement over their parents. 9. Which US Holiday do you enjoy the most? July 4th. This is a great country! 10. If you could have a "do-over", what would you choose to go back and change? Not a thing! My life is good!

6. In what area does the SCDOI most need to improve from a licensing and regulating standpoint? We continue to review our regulatory process to make sure we are as efficient and financially responsible as possible. Our goal is to make it easier for companies to do business in our state.

7. As the Director, what is your number one focus, regarding the captive insurance industry? Our major focus is to see the captive industry succeed and thrive in South Carolina.

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The Captive Insurance Journal Third Quarter, 2013

South Carolina is

On the Move!

We are very excited to have two new additions to the Captive Insurance community here in South Carolina. Meet Jay Branum, the Director of Captives at the South Carolina Department of Insurance and Cameron Yost, the new Executive Director at the South Carolina Captive Insurance Association.

William “Jay” Branum Director of Captives South Carolina Department of Insurance

Jay Branum began work as South Carolina’s Director of Captives on November 1st and is very enthusiastic about the future of the domicile! Most recently, Mr. Branum served as Managing Director of Munich American Risk Partners (MARP) in London and has worked in a variety of senior positions not only in the United States but in Bermuda

as well. Mr. Branum brings a wealth of experience to the role in the following areas: • Captive formation and management • U.S. and international regulatory, public policy, governance, and market access issues • Strategic planning and change implementation Interesting Facts about Jay: • He holds dual citizenship in the US & UK • Speaks German and French • Member of American Bar Association and Louisiana State Bar

Welcome to South Carolina Jay, we are so glad you’re here! Cameron Yost began work as the South Carolina Captive Insurance Association in October and is thrilled to have the opportunity to work with the association and its members. Most recently, Mrs. Yost worked as an Account Executive at an inbound marketing and advertising agency in Winston-Salem, NC. She is a native of Greenville, SC and very excited to be back in the Palmetto state. In addition, to her marketing experience, Mrs. Yost brings experience in event planning and non-profit management to the role.

Cameron Yost Executive Director South Carolina Captive Insurance Association

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The Captive Insurance Journal Third Quarter, 2013

About SCCIA The South Carolina Captive Insurance Association exists to enhance the captive industry within South Carolina and promote South Carolina as the leading domicile within the United States.

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SCCIA Palmetto Captive Journal