The Captive Insurance Companies Association (CICA) has increased its investment in its federal advocacy efforts, according to CICA president Dan Towle.
Speaking at the opening of the International Conference in Scottsdale, Arizona Towle said while the industry is in a continued ‘Golden Age’ it is important not to “rest on our laurels”.
CICA has retained a leading lobbying firm in Washington DC to support these efforts.
“We feel it is important that we are prepared to represent and defend our interests throughout the year and have these resources be readily available,” Towle added.
“It is easy to get excited about the wonderful growth we are seeing in the marketplace, but we must never lose sight of ongoing threats. As our industry grows, we become a larger target for people and entities that don’t understand what captive insurance is and the benefits it provides for companies to better manage their risk.
“Despite our success, we cannot rest on our laurels. We need to continue to be diligent and consistently educate, lobby, and defend the use of captives for better risk management and financial efficiency.”
Towle said the record new numbers of captive formations, the emergence of new domiciles and the broader utilisation of existing captives are all indicators of a period of “continued growth and prosperity”.
“Our members that service and manage captives report year after year of continued record numbers with very little slow-down in sight,” he said.
“On a global perspective, it has been encouraging to see at least half a dozen European countries either becoming a domicile as France did recently or expressing interest in becoming captive domicile.
“This long overdue development clearly signifies the acceptance by these countries’ governments of the validity and valuable business purposes of captive insurance. That is a huge development for their markets.”