Technology could have an influence over future trends in captive formations, said a panel at the Vermont Captive Insurance Association Annual Conference.
Panellists discussed how technology could influence captive formations in the future, giving examples of how it can assist with day-to-day risk.
Mary Ellen Moriarty, vice president of property and casualty at Educational & Institutional Insurance Administrators, believes that technology has helped the formation business.
“If you go back in time, the whole data cycle was a gigantic investment of time and I think you have got to give yourself a good year to form a captive, but I think the transactional bits, getting the data back and fourth, is much easier.”
She continued: “When it comes to a response in business plan changes and you want to add a line of coverage to your captive, you need to go to the regulators for approval. In 2002 it took weeks; now it really only takes a day or two. It really has become much more efficient than what it was 15 years ago.”
Sandra Bigglestone, director of captive insurance at the Vermont Department of Financial Regulation, added that regulation needs to be as innovative as technology, both in terms of the law and adapting what captives need to be able to do, and the regulator it mandates, so that the regulator can move at the speed of business.
Anne Marie Towle, vice president of the North America captive consulting practice at Willis, spoke about how technology can influence the future of captive formations.
Towle gave the example of a contractor company overseeing a job: an app would let the contractor check on sub-contractors and track when they arrive at a job, how long they take, and when they check out.
When it comes to captives, the tracking ability would allow data to be gathered for workers’ compensation coverage, she explained.
She believes with that data, immediate reporting and having the captive respond, it can assist with day-to-day risks, which would help to mitigate claims.
