What is the current climate like in Alabama’s captive insurance industry?
Alabama’s captive insurance industry is rapidly growing. The state’s regulators continue to respond quickly and fairly to captive requests. The domicile is recognised by its ability to find innovative solutions to complex and ever-evolving problems.
For the fourth consecutive year, Alabama placed in the top five nationally in net captive formations and continues to push the industry forward with industry-leading updates to the Alabama Captive Act. The state has established itself as a respected jurisdiction with a willingness to work with prospective and licensed captive companies.
What has the ACIA been working on?
The ACIA has been working hard in 2020. In January, the ACIA rolled-out its Risky Business Internship Program in partnership with Troy University’s Risk Management and Insurance Program. Risky Business is a collaborative internship experience, whereby students will spend time with multiple employers, including the Alabama Department of Insurance, during the course of a 10- or 15-week internship. The goal of the programme is to provide students with exposure to multiple areas of the industry, promote networking, and allow employers to “try before you buy”. Over the course of a 15-week internship, students will spend time with three different employers, and employers will host three different students. Since January, six interns have completed the internship programme, and three of the students, all graduating seniors, have accepted full-time jobs from their internship experience.
Elsewhere, the association ran a bill to improve the Alabama Captive Insurers Act in early 2020, passing the Alabama House of Representatives’ Insurance Committee, Alabama House of Representatives, Alabama Senate Insurance Committee without a single nay vote. This bill was on the docket to be voted on by the Alabama Senate a week after the Alabama Legislature recessed due to COVID-19 concerns in March 2020. The ACIA will run the bill again in 2021, with additional language to improve risk retention group (RRG) regulation in the State of Alabama.
Upon passage, we expect to see an increase in the formation of branch captives and additional RRGs. As for the legislation currently enacted, Alabama has seen consistent growth in captive insurance companies over the past 12 months.
To further support the captive industry within the state, ACIA established a Political Action Committee in 2020 to assist future growth in Alabama’s industry.
What are the biggest challenges for the captive market right now?
One of the most pertinent emerging issues the industry faces today is preparing for the next 20 years. How is the industry going to cope with the rapid retirement of many of its most skilled and senior leadership? This talent crisis is the reason why the ACIA has made such an aggressive investment and push to involve risk management and insurance students with the industry through its Risky Business Internship Program.
What are you most looking forward to about the Alabama Captive Insurance Conference?
To be honest, I cannot pick just one. I am excited to see our friends and colleagues from across the industry in-person again. We have missed the networking and fellowship opportunities that cannot be facilitated across digital platforms.
We are very excited to welcome more than 30 risk management and insurance students to the ACIA conference. This is a great opportunity for students, and their professors continue to tell us how excited the students are to get to spend time around the captive industry. We have several networking events built in, even a resume swap, and a student-focused curriculum for industry newbies.
Lastly, I am excited about the Capstone social event Taste of Birmingham at Avondale Brewing Company at their beautiful open-air outdoor concert venue. We will have more than half a dozen locally brewed craft beers from around the city and a number of local food vendors will be serving some of their favourite meals! We will top it all off with live music and a congratulations to our Risky Business employers and interns.
What can attendees expect from this year’s event?
Attendees can expect to have a good time with quality programming and COVID-19 safety measures in place in accordance with CDC Guidelines.
We are welcoming back many association members and a number of ACIA newbies who are eager to get back on the conference circuit.
There will be ample networking opportunities and we made sure to secure a location that exceeded social distancing requirements.
A COVID-19 safety precaution will be provided to each attendee at check in. Attendees will have a temperature check upon entrance and will be provided with a filtered cloth mask. They will also receive a personal bottle of hand sanitiser that may be clipped to name tag. Hand sanitiser stations will feature throughout the venue and there will be zero-touch food and beverage stations. Finally, there will be an option of red or yellow wrist bands to display personal social distancing expectations and no-touch conference greeting.
Attendees should also expect to see a number of unfamiliar faces, as we will have more than 30 risk management and insurance students attending from across the state.
What will the ACIA be working on for the rest of the year and how do you expect the next 12 months play out?
The ACIA will continue to promote and grow the Risky Business Internship Program and prepare legislation to be considered by the 2021 Alabama legislature. We expect great growth from Risky Business as the programme continues to build momentum and grow in popularity among students and employers alike. As always, ACIA legislation will be drafted to improve Alabama as a captive domicile, particularly as it pertains to RRGs. We are grateful to have a regulator that is pro-business and a legislature that is dedicated to economic development; thus we anticipate a favourable outcome in respect to 2021 legislation. We expect to release further information about our service provider certification programme during the next 12 months. ?
