Vermont Department of Economic Development
Ian Davis of the Vermont Department of Economic Development discusses the state’s captive insurance trade mission to Mexico
What are you currently working on within the Vermont captive insurance market?
This time of year is a busy time for Vermont’s captive industry. In addition to the many captive conferences and events we attend, the fourth quarter is when we often license the greatest number of captives, develop our proposals for the upcoming legislative session and layout our objectives for the coming year. By all accounts, 2019 is shaping up to be another strong year for Vermont and we have a number of exciting activities planned for 2020.
In August, VCIA revealed it will be leading a captive insurance trade mission to Mexico - how will you be involved in this?
This is really a jointly-led effort. While the State of Vermont and VCIA have extensive experience hosting business development roadshows throughout the US, for this particular undertaking we felt it necessary to utilise the resources and expertise of our Mexican counterparts. Together we are working with multiple partner organisations—including the office of the US Commercial Service in Mexico, Mexican insurance regulators and representatives from Mexico’s International Trade Administration—to help promote the event. As the captive experts, we are focused on tailoring the educational content to our Mexican audience, whereas our partners in Mexico are helping to lead the marketing and outreach activities.
Who else will be involved in the trade mission? And what work is being done in preparation?
Even before the trade mission was formally announced back in August, we had been reaching out to our captive colleagues to gauge their potential interest and level of involvement. Several expressed a strong interest and have already signed on as event sponsors. We anticipate that more companies will want to get involved as awareness around the event continues to grow.
In terms of preparation, we have already confirmed the event-related logistics—including venue, on-site support, translation services. We are now in the process of working with the US Commercial Service office in Mexico to help manage the promotional campaign and outreach activities. Our sponsors, along with our existing Mexican contacts, have also been very helpful in getting the word out.
What is the overall objective/goal of the trade mission?
The overall objective of the trade mission is to help educate the Latin American market on the benefits of captive insurance and the advantages of being in a reputable, onshore jurisdiction like Vermont. We know based on our discussions with Latin American companies, as well as captive managers and service providers, that there is increased interest in captives among insurance and risk management professionals in the region. As a global leader in captive insurance, we think that we have a role to play in helping ensure the captive concept is well understood and communicated, and we look forward to participating in the discourse.
When will the trade mission take place and what will the educational forums cover?
In many ways, the educational forums will mirror the existing road show events we hold throughout the US. The general structure consists of two separate educational seminars featuring a combination of captive owners, service providers and Vermont regulators.
The first seminar is focused on the basics of captive insurance—the reasons for formation, the feasibility process and key issues in putting a successful captive programme together. Attendees also gain an understanding of the cost structures associated with captives, tax implications and hear a brief overview of the Vermont domicile.
The second portion of the event, in my opinion the most valuable, is centered around the actual experience of captive owners. In this seminar, captive owners are asked a series of in-depth questions about their respective programmes, including the various challenges they may have faced, obstacles overcome, and the lessons learned from owning and operating a captive. This portion of the programme is often highly interactive and gives audience members—many of them prospective captive owners—the opportunity to ask their most pressing questions. Excitingly, we have already lined up a Vermont-domiciled, Mexican captive owner to lead this portion of the event.
What are the reasons for selecting Mexico as the destination for this trade mission?
We had been looking at hosting an international roadshow for the last few years. As is often the case, when we were considering where to go, we made our decision based on what we were seeing and hearing from the industry. From those conversations, it became clear that Mexico should be our first destination.
Is this something you plan on doing in other locations?
I will say that based on the initial feedback we have received, it certainly appears there is a demand for these types of events. The fact is, Vermont services the global industry and we have over 60 captives with international parents; as the largest US domicile and third largest in the world, I think it is incumbent upon Vermont to play a leading role in spreading the message about captives.
