Frances Jones talks to Strickland Hardee’s Audrey Cook to find out how her role as an associate relates to captives, and what lies ahead for the company
How has your previous experience prepared you for your current role as associate and what’s your favourite aspect of working in the captive industry?
I was fortunate enough to be hired before I graduated. I’ve worked at Strickland Hardee since I graduated in December 2020, and I’ve been here ever since.
When I started I didn’t really know a lot about the captive industry. My classes were focused more on accounting and auditing processes.
My role is exciting and a huge learning curve. My experience of captives beforehand was limited but working with our partner TJ, and Strickland Hardee has been really helpful and helped me to grow in my career.
I’ve enjoyed being welcomed into the captive industry and becoming part of it. I’ve been part of it for nearly three years now.
What are the key benefits of captives in the
current climate?
Personalisation — when going to the traditional market for coverage, it can be very expensive for insurance companies, and sometimes these coverages contain aspects that don’t even apply to you and your business.
I like that, with a captive, the parent company can construct and tailor the company to meet its needs. This allows the company to mitigate expenses that don’t benefit the parent company — this can’t be done, at least not to the same extent, in the traditional market.
Another key benefit is that the captive insurer aims to increase its parent’s control. Against the backdrop of overheads becoming more expensive every year, captive insurance allows its parent to offer lower operating costs.
In this economic climate, you don’t want to be overpaying for a claim and you want to ensure that it’s legitimate. I think having more control over where your money goes over a claim is always in the parents’ best interest.
Finally, captive insurers allocate investment income to support losses. That’s another key benefit a captive offers that the traditional market does not.
What does Strickland Hardee offer its clients that differs from similar firms in the industry?
Again, personalisation! We’re a smaller firm that’s committed to meeting the needs of every client, big or small. Whatever our clients need, that’s what we’re here for. At Strickland Hardee, I really like that everyone is just as important. Our motto is ‘where integrity meets trust’, that’s what all of us aim to satisfy.
One of the ways we serve our clients is staying up-to-date with current and upcoming changes to accounting policies. We provide a variety of services from financial statements to outsourced chief financial officer services. Our focus is always on the client.
From your experience, what would you say are the main benefits of domiciling a captive in North Carolina?
North Carolina is a huge domicile which is great, it’s the fourth-largest in the US. I think the reason it’s grown so rapidly as a captive domicile is because of its desirable premium tax rate. It goes without saying that everyone is looking at the dollar value and how much tax people are paying when considering the desirability of a domicile. The tax rate is attractive in North Carolina in comparison to other states. Captives in the state are exempt from the North Carolina Department of Insurance’s fees, with the exception of application fees.
North Carolina has a large selection of captive managers. This will enable you to find a captive manager who meets your needs. There’s a wide selection of captives; it’s not a monopoly and I really think that’s great.
Another benefit is the state’s capital requirements — they’re directly associated with the company’s risk profile. This favours both big and small companies.
What can our readers expect from Strickland Hardee over the next 12 months?
We have a lot coming up. We’re growing. We’ve had two new directors join us, Daniel Milan and Nicholas Wicker. Milan is director of insurance services and Wicker is the director of non-profit and governmental services.
Our focus will continue to be our clients. We’re looking to expand to serve more clientele and reach more people.
