Derek Freihaut


Meeting Highlights: Cyber Security Risks, Affordable Care Act, SB 909

The South Carolina Captive Insurance Association (SCCIA) held its 15th Annual Executive Education Conference this week at Isle of Palms in South Carolina. Constant rain throughout the event did not dampen the spirits of those at the meeting. Since passing the enabling legislation in 2000, South Carolina has seen their number of active captives climb to an estimated 160 by yearend 2014.

There were a number of quality educational sessions at the meeting. Jeff Rosenburg of BlackRock had a great session Tuesday morning on themes we are seeing playing out in the investment markets, particularly the fixed income market. That afternoon Bruce Whitmore of Willis and Art Randolph of Pinnacle had an interesting session about the impact of the Affordable Care Act on the health care marketplace and potential captive solutions.

On Wednesday Matthew McCabe of Marsh presented on Cyber Security Risks. Matthew’s background working with the U.S. House of Representatives Committee on Homeland Security gave us a unique perspective on the various types of cyber threats. Given the number of recent high profile data breaches, this has been a popular topic at many educational conferences this year.

One of the meeting highlights was on Tuesday afternoon when Governor Nikki Haley signed into law Senate Bill 909. This bill included several helpful clarifications to the state’s captive statute to help simplify the captive application process. SB 909 also allows captives to form incorporated protected cells. Protected cell captives allow for "cells" that can be separately owned and their assets and liabilities are segregated from the assets and liabilities of other cells. This structure enables a cell to be run as if it were a separate company although it remains part of the larger corporate body.

As always, the SCCIA educational conference was a nice chance to catch up with our South Carolina clients and several industry contacts. We look forward to joining them again next year.

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«May 2019»