The insurance industry is constantly evolving as new risks emerge and organizations develop strategies to mitigate them. In the captive industry, it is crucial to adopt an approach that prioritizes effective claims and risk management, while also fostering long-term organizational growth.
The captive experts in our dedicated Carrier Practice boutique are committed to staying current with industry trends by way of our team’s first-hand experience, cutting-edge technology, and setting the industry standard for operational efficiency and cost savings for our captive clients. Amy O’Brien, VP — Captive Practice Sales, recognized as a member of the Captive Power 50 for the fourth year in a row and, more recently, named one of Captive International’s Influential Women in Captive Insurance for 2024, recently returned from the VCIA Conference and shares her insights.
Industry Connection: Amy O’Brien’s Key Takeaways from the VCIA Annual Conference
We understand the needs of captives in today’s evolving market as we attend dedicated conferences and connect with our industry colleagues. Earlier this year, Gallagher Bassett (GB) had representatives at the World Captive Forum—who shared their insights about the growing industry, talent, and technology—and, more recently, at the Vermont Captive Insurance Association’s (VCIA) annual conference. Held on August 12–14 in Burlington, Vermont, our team had the opportunity to learn what’s trending in the captive space, network with colleagues and clients from across the industry, and demonstrate GB’s capabilities to support our captive partners. As a representative of our organization, I have been attending this conference for nine years and, this year, was joined by fellow GB team members Antoine Green, AVP — Risk Management Sales, and Tim Over, SVP — Business Development Director for GB Specialty.
The conference’s total registration was about 1,100, with over 280 being first-time attendees, and all are contributing to the growing base of captive owners, captive managers, brokers, regulators, service providers, and other stakeholders in the captive space. VCIA is touted as the largest captive association, and they still found success in making the event feel welcoming. They hosted a Newcomers Orientation and invited industry experts who were eager to share their experience and build network connections.
Notable Trends for Captives
Expansion was largely discussed throughout the conference, in the way that risk managers look to broaden the potential of their captives by adding additional coverages where it makes sense, likewise for group captives who aim to add lines such as commercial auto and property. One panel also discussed how the transparency of where premium dollars go is beneficial for captives overall.
The importance of fronting carriers in the captive equation was reinforced throughout the meetings as there are practical reasons and strategic reasons for working with a fronting carrier. A captive client can have multiple insurance programs that mix captives and traditional markets, so ideally, it’s important to have a claims team that can serve both. One reason is the consolidation of invaluable claims data in a reliable, feature-rich RMIS. The KPIs, claims details, loss runs, and other benchmarks that come out of consistent data collection are crucial for captives.
Standout Topics and Themes at the Conference
While there are a wide range of session topics, I gravitate to those that are claims related. Specifically, I enjoyed the panel on nuclear verdicts, titled, “Lessons Learned – Impacts on the Captive and Parent.” For newcomers, the panelists talked about the difference between social inflation and overall inflation, as well as the drivers of nuclear verdicts and reptile theory.
They went deeper into if you should anchor the damages, how to appeal verdicts and manage reputational damage, and the effects on claim file reserves, with the primary takeaway focusing on how to prepare for cases that are headed toward litigation. The captive owner, claims administrator, and any other authorized parties to the claims can apply the offered strategies when addressing claims and anticipating their trajectory until close. Our GB LegalScore litigation management program comes to mind in terms of managing the defense firms used, preparing budgets, and taking a proactive approach to represented claims.
Following an introduction of committee chairs, I found myself in a series of immediate meetings with prospects, brokers, and service providers. In my current role as VCIA Marketing & Membership Committee Chair, I enjoy the ability to strategize with others, discuss current insurance trends, and learn, in kind. One panel speaker said about the captive model, “This is service provider-driven,” and that places GB in an excellent position to be the preferred property/casualty claims administrator for the newly forming and existing captives.
Your Partner for Growth
Small captives, start-ups, and new partnerships came up often in my meetings, many asking “is there a minimum size captive we can handle?” And for GB, the answer is no, as we can provide property/casualty claims handling across a wide array of coverage lines, for various risks, within the U.S. and internationally. We have over 6,500 claims professionals globally. Our group captive unit is a boutique within that footprint. We also have our Specialty lines team (who handle professional liability, E&O, D&O, cyber, products, construction defect, healthcare, and more), our Transportation Major Case Unit, and other traditional risk management expertise within our teams. We can even provide loss control.
As someone in the claims handling provider category, I was pleased to hear claims and loss control mentioned in several panels and venues of the conference. Once a captive is established, one must remain prepared for the claims that result. The highlights, for me, tie into our ability to serve these top-of-mind topics.
Captive Industry Recognition: Delivering with Service Excellence
With regulations and legislation for each domicile, changing technological capabilities, and the growing importance of data insights, captive organizations need a partner that not only understands their business and goals but can provide the expertise that will help them succeed.
For the seventh year in a row, GB has won Captive Review’s Claims Specialist award, which recognizes a claims handling firm or TPA that serves captives while demonstrating high-quality service for clients. Additionally, GB’s new internship program IN2GB also won in its category, being awarded Captive Review’s Next Gen Initiative of the Year. A rotational summer internship program, IN2GB introduces students from Historically Black Colleges and Universities (HBCUs) to insurance and helps develop the next generation of industry talent.
In the ever-evolving captive industry, it is more important than ever that these entities choose the right partner to support their claims and risk management success. At GB, we elevate our captive partners’ businesses, continuously scaling our team and capabilities to deliver the expertise and data-driven technology our partners need.
We focus on improving outcome analytics and streamlining data-driven insights to consistently deliver meaningful outcomes for our captive partners. Luminos, our award-winning risk management information system (RMIS), was named the most comprehensive product offering in the bundled TPA space for the seventh year in a row in the 2024 RMIS Report by Redhand Advisors.
If you’re a captive organization looking for a partner that understands your business and can provide the expertise and technology you need to succeed, our team can help. Get in touch with our team today and discover how we can support your captive program.
