SIGMA
SIGMA’s Enoch Starnes shares his journey in actuarial consulting and highlights the dynamic opportunities of working in the captive insurance industry
Tell us a little about yourself and your career history?
I have spent the bulk of my professional career in the actuarial consulting field. Many of those early years focused on clients with more traditional insurance programmes and risks, and while this did not grant me direct experience with the unique situations found in the captive industry, it did provide a foundational understanding of actuarial analytics and the opportunity to practise explaining actuarial topics to my clients. My recent work with captives relied on this knowledge, which I did not realise at the time.
As many captive professionals likely know, individuals and groups exploring captive solutions often lack the same level of insurance expertise as those in the more traditional side of the industry. As a result, captive professionals frequently face the dual responsibility of assisting clients in developing a solution for their insurance requirements and imparting knowledge about the associated benefits and risks. I have found that working in actuarial analytics, a field where explanation and education are key to success, has provided me with ample preparation for the similar needs of captive insurance.
Can you tell us about some of the unique challenges of working in captives? How do you find the opportunity to work with such varied clients?
By its very nature, my role as a captive and complex risk consultant means that both the clients I work with and the risks I analyse are always changing. While that variation can be challenging at times, it also allows me to view captive insurance and the strategic advantages it offers through many different lenses.
Customising captive insurance companies to meet the specific needs of their insureds is one of their advantages. To give an example, I have recently worked with an energy company seeking to insure their stranded asset risk, a real estate agency wanting a cost-effective option for their errors and omissions (E&O) deductible layer, and an insurance broker trying to reduce the cost of weather risk for the automotive industry. Each of these firms has drastically different needs and goals, but the common thread is that they have found a solution through captive insurance.
What aspects of this industry do you find most interesting, or most fulfilling?
For me, there are two aspects of captives that bring the most fulfilment: the wide range of individuals in this industry and the opportunity for education. Even though I have relatively little experience in fields outside of insurance, I have a difficult time thinking of many other ways in which I would have the opportunity to meet and engage with people from such a variety of backgrounds, experiences, and perspectives.
The educational aspect is itself twofold. It is certainly the case that I enjoy helping others understand actuarial analytics and the strategic benefits they offer captives, but I have also found that working in this industry presents me with the chance to better understand topics that might be considered outside the actuarial field.
How important is support and guidance for those working in captives.
Very important. My primary influences are my colleagues at SIGMA Actuarial Consulting Group, including Al Rhodes, Michelle Bradley, Tony King, and Tim Coomer. Without their guidance and trust, it would have been much more difficult for me to find myself working with captives. I would also like to acknowledge the influence my education at the International Centre for Captive Insurance Education (ICCIE) has had on my career. The depth of instruction, knowledge, and real-world experience from the instructors in the Associate in Captive Insurance (ACI) programme has been crucial to my ability to help my captive clients.
Outside of your normal day-to-day activities, are there any other areas you feel keenly about?
While my captive career is still relatively young compared to many in the industry, I would love to play a role in helping usher other young professionals into such an engaging field of work. I believe that this process has already begun at SIGMA, and it would bring me genuine joy to witness its continued development in the future.
With this passion for new talent, what advice would you give to people considering a career in captives?
I would encourage any professionals looking to join the captive industry to be eager to consume. Whether it is through written material in captive periodicals, virtual webinars held by a number of firms, or conversations with captive owners and service providers, you will receive immeasurable benefit from your willingness to seek out and engage with the many outlets of captive expertise.
