hawaii captive insurance council · 2014-11-26 · p.o. box 2815 honolulu, hawaii 96803 1 . a g e n...
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P.O. Box 2815 Honolulu, Hawaii 96803
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A G E N D A
Meeting of the Executive Committee Wednesday, November 12, 2014 11:00 am (Hawaii Standard Time)
1:00 pm (Pacific Daylight Time)
Offices of AON Insurance Managers 201 Merchant Street, 24th floor
Honolulu, HI 96813
Dial +1 (805) 309-0027 Access Code / Meeting ID: 928-856-213
A. Call to Order/Determination of Quorum
B. Approval of the September 10, 2014 Executive Committee meeting minutes
C. Review proposed officer slate (see page 2)
D. Committee Reports • Legislative • Membership • Finance • Marketing • Website • Education • Japan Marketing • Industry Liaison Update • Government Relations Update
E. Other Business • HAR Admin Rules update • Re-visit Planning Meeting Items – progress, continued relevance, etc. (see page 3) • Review proposed 2015 meeting schedule (see separate attachment) • Holiday Luncheon, Wednesday December 17, 11:30am, Plaza Club
F. Adjournment
P.O. Box 2815 Honolulu, Hawaii 96803
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Proposed Officers – 2015 Chair Fay Okamoto (1 year remaining in BOD term limit) Vice Chair Ward Ching President Paul Wagner Vice President Jerelyn Brown (1 year remaining in BOD term limit) Vice President Matt Takamine Treasurer Jason Palmer Secretary Jamie Asato Assistant Treasurer Ryan Nobriga Assistant Secretary Christina Kamaka
Note that the Assistant Treasurer and Assistant Secretary do not need to be HCIC Directors, although historically they have been. Christina Kamaka was willing to continue in a role for the Executive Committee even though she is not an HCIC Director this year. Proposed roles/ tasks: Secretary / Asst Secretary – circulate EC and BOD meeting materials, prepare minutes of EC and BOD meetings (minutes are reviewed by Chair or President). Sign any corporate documents as needed. Treasurer / Asst Treasurer – oversee all financial aspects including prep of financials, banking, cash management, budget, Hawaii GET and Federal income tax filings. Asst Treasurer – coordinate annual insurance renewals (general liability, D&O liability), with input from directors experienced in risk management / coverage issues. Vice President – coordinate HCIC external communications amongst all HCIC committees, organize HCIC social functions not already handled by some other committee (e.g. holiday party). President / Chair / Vice Chair –Role of captive owner officer(s): primary public “face” of HCIC to external constituents and HCIC membership. Role of service provider officer: organize and “run” HCIC EC and BOD meetings, send meeting invites, coordinate HCIC internal tasks.
P.O. Box 2815 Honolulu, Hawaii 96803
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Planning Meeting – mid-year review Planning meeting was held in May 2014. This is a mid-year review / refresher of the items discussed, evaluate progress, continued relevance of the strategies: Marketing items:
• West Coast trip, July 2014 seemed well received • Pacific Northwest, 2015? • Coordinate dates around other known events (e.g. RIMs, CICA, etc.) • Pursue speaking opportunities / session submissions to other organizations:
o Local RIMS – Western Region RIMs conference o Local RIMS – others? o CPCU next annual conference in Hawaii – 2016 o CFMA o ASHRM o RIMs national o CICA o World Captive Forum o SIIA (more interest in medical stop loss captives) o University Risk Management programs
• More frequent press releases – propose to have VPs oversee / coordinate more frequent communications
Forum Scholarship:
• Positive feedback from 2014 recipients. Need to keep in touch with them. • Suggest limiting to 3 recipients for 2015 Forum. • Suggest opening the practicum (why Hawaii, formation process) to all interested participants.
Regulatory Opportunities:
• New administration may be opportunity for dialogue • Effective & efficient exam procedures (certain procedures annually rather than only every 5
years) • Consistency of exam findings vs. comments vs. best practices • Re-evaluate applicability of Article 2 (examiners handbook) to pure captives
Government Relations:
• Established dedicated government relations liaison and outline of 2015 action plan • Evaluated PAC and determined it might not be the optimum vehicle to support lobbying efforts • Designate a portion of HCIC membership dues for “lobbying” activities, and continue grass roots
efforts • Contact during administration transition is suggested, particularly at DCCA level.
Sponsorships & other items:
• Higher level of sponsorship to be made available for 2015 Forum. • ICCIE – drawing for “free” ICCIE session to be considered at 2015 Forum. • Industry liaison – schedule for 2015 events. Increased participation in CICA initiatives? • Purchase of laptops / projectors – under consideration by Education committee
Legislative Committee Report
Date: November 11, 2014
Submitted by: Jerry Yoshida
Committee Members: Jerelyn Brown Danel Licari Paul Shimomoto Ward Ching
Capri Haga Edward Haik Mark Hironaga Christina Kamaka
Chris Mertes Jill Miura Fay Okamoto Jason Palmer
Scot Sterenberg Matt Takamine Colin Teraoka Paul Wagner Jerry Yoshida
A. Subject: Proposed Administrative Rules: In follow up to concerns expresed at a recent HCIC Board meeting, the HAR Rules Subcommittee met
yesterday with Deputy Insurance Commissioner and Captive Insurance Administrator, Sanford Saito, regading the latest draft version of the proposed Administrative Rules changes (“Proposed Rules”). At that time Sanford informed the Subcommittee of the Insurance Commissioner’s feedback on the Proposed Rules, and the members of the Subcommittee relayed and discussed the HCIC Board’s areas and levels of concern regarding the same. Further detail and insight regarding this most recent meeting with Sanford will verbally be provided at the Executive Committee meeting.
B. Subject: NAIC F Committee Proposal re Multi-‐State Captive Reinsuers: There appears to be movement at the NAIC to address the root of the issue that precipitated the
F Committee’s initial proposal regarding Multi-‐State Captive Insurers. It appears that a draft framework is being developed and may be considered at next week’s NAIC Fall meeting that will ostensibly allow certain types of life insurance captives to be used unitl the principles based reserving mechansim can be ratified by the states as a national standard.
P.O. Box 2815 Honolulu, Hawaii 96803
Marketing Committee Report to Executive Committee
Nov 12 2014
Offices of AON 201 Merchant, Suite 2400
Honolulu, HI 96813 Committee Members: Scot Sterenberg, Chair Jerelyn Brown Ward Ching Kevin Higa Chris Mertes Paul Shimomoto Alice West
A. Planning transition of Chair by Jan 2015 B. Meeting planned with Sanford Saito in Dec to plan 2015 Schedule
C. Calendar of upcoming events is as follows: Event Date Involvement CICA March 2015 HCIC & HID Captive Live TBD RIMS April 2015 HID
P.O. Box 2815 Honolulu, Hawaii 96803
PROPOSED 2015 MEETING / EVENTS CALENDAR
ANNUAL MEMBERSHIP EVENTS Jan/Feb, 2015 – Legislative Breakfast Briefing (tentative)
Thursday, October 29, 2015 ‐ Annual Membership Meeting (at HCIC Forum)
Wednesday, December 16, 2015 – Annual Holiday Luncheon (tentative)
STRATEGIC PLANNING (Board, EC, and Committee Chairs) June, 2015 10:00AM HST/1:00PM PDT (tentative)
EXECUTIVE COMMITTEE February 11, 2015 11:00AM HST/1:00PM PST
April 8, 2015 10:00AM HST/1:00PM PDT
No separate EC meeting in June; EC and Board will have strategic planning session
August 5, 2015 10:00AM HST/1:00PM PDT
October 14, 2015 10:00AM HST/1:00PM PDT
November 4, 2015 11:00AM HST/1:00PM PST (remaining EC members)
BOARD OF DIRECTORS March 4, 2015 11:00AM HST/1:00PM PST
April 22, 2015 10:00AM HST/1:00PM PDT
No separate Board meeting in June; EC and Board will have strategic planning session
August 19, 2015 10:00AM HST/1:00PM PDT
October 27, 2015 Time TBD, at HCIC Forum (outgoing board and chairs)
November 18, 2015 11:00AM HST/1:00PM PST (incoming board to elect officers) Changes to the above meeting schedule may be made, particularly if aligned to captive owner directors’ physical presence in Hawaii, or as deemed necessary by management. Each meeting will be formally noticed approximately one week prior to the scheduled meeting date. Additional meetings may be called as necessary.
P.O. Box 2815 Honolulu, Hawaii 96803
Quarterly Meetings with Hawaii Insurance Division: (Captive owner presence at these meetings are high priority) January/February ‐ legislative items and plans for RIMS April – dinner at RIMS June or July September or October
Captive & Risk Management Conferences, State of Hawaii Marketing Trips, 2015 (red = events with HCIC or HID presence; blue = submit sessions) Feb 2‐4 World Captive Forum Boca Raton, Florida Mar/Apr (TBD) HID Marketing Trip 1‐2 days in Pacific Northwest March 8‐10 CICA Orlando, FL (HCIC exhibit) April 26‐29 RIMS New Orleans, LA (HID exhibit) June 8‐10 Bermuda Captive Conference Bermuda Jun 27 – Jul 1 CFMA Chicago, IL (HCIC submitted session) August 11‐15 VCIA Burlington, VT (HID may attend) September RIMS Western Region Conf Southern Cal (HCIC may participate) Sept Captive Live USA Chicago, IL (HCIC may exhibit) Oct NRRA Chicago, IL (HID will attend) Oct 18‐20 SIIA Nat’l Conference Washington DC (HCIC may participate) Oct ASHRM TBD Oct 27‐30 HCIC Forum Poipu, Kauai, HI Nov 8‐12 IRMI Construction Conf TBD TBD HID Marketing Trip Japan Dec Cayman Captive Conference Cayman Islands
Other Dates: Mar 8 – Daylight Savings starts Nov 1 ‐‐ Daylight Savings ends
P.O. Box 2815 Honolulu, Hawaii 96803
Minutes
Hawaii Captive Insurance Council Corporation
Meeting of the Executive Committee September 10, 2014
Honolulu, HI 10:00 am (Hawaii Standard Time) - 1:00pm (Pacific Standard Time)
Call in Number: 1 (805) 309-0027; Access Code/ Meeting ID: 928-856-213
Attendees: Excused:
Fay Okamoto, Chairman Paul Wagner, Vice Chair - Teleconference Chris Mertes, President - Teleconference Ward Ching , Vice President - Teleconference Christina Kamaka, Vice President Jason Palmer, Treasurer - Teleconference Jamie Asato, Assistant Treasurer Jerelyn Brown, Secretary Invited Guests: Gerald Yoshida, Legislative - Teleconference Matt Takamine, Legislative - Teleconference Scot Sterenberg, Marketing Danel Licari, Membership Ed Haik, Membership Paul Shimomoto, Industry Liaison - Teleconference Kari Nettel, Project Coordinator
Mark Hironaga, Assistant Secretary Colin Teraoka, Japan Marketing Jill Miura, Education/Forum
Agenda Item Comments/Follow Up
A. B. C.
Call to Order July 9, 2014 Executive Committee Meeting Minutes Committee Reports
Meeting was called to order by Fay Okamoto at 10:05am Approved as presented. Finance Committee: - Jason Palmer No new financial statements are available since the June 30, 2014 financial statements reviewed at the July meeting. . The Bank of Hawaii TCD matured on 7/30/14 and was renewed for one-year at the same rate of .15%. Pursuant to review, the EC approved the Committee’s suggested “holistic approach” to (1) invest excess cash of $100,000 in a 10‐month certificate of deposit at First Hawaiian Bank (0.20% special rate), (2) renew the $125,000 certificate of deposit at Bank of Hawaii on January 28, 2015 for 6‐months. In the spring of 2015 seek investment recommendations from our HCIC member banks/investment firms based upon a $500,000 portfolio to start on August 1, 2015. Forum Committee: - Jason Palmer reported that the expense budget is line and sponsorship income is also on target to budget. They are still looking for an industry carrier representative to open the conference on the “State of the Industry”. The EC extended the Early Bird by an additional week since the session list has not been posted to the website. Total registration is 135 and the room block at Ihilani is sold out. Legislative Committee: – Gerald Yoshida reported that he met with Sanford Saito who advised it is unlikely that the Administration will be submitting any bills for the 2015 legislative session. Also, the Rules Committee is scheduling a meeting with Sanford Saito to discuss the second draft of the proposed rules from the Insurance Division. Jerry Yoshida will circulate the second draft of proposed rules to the EC. Captive Industry Liaison: - Paul Shimomoto provided his report as of 9/8/14. The Captive Association Leadership Council (CALC) is concerned with reputational risk and would like a mechanism for educating the public/media that 831(b) captives are a standard risk management
tool and not a tax dodge. The NAIC committee reviewing the multi-state reinsurer definition deferred this item until the December meeting. HCIC will continue to monitor and will be prepared to respond. The CICA Reputational Task Force is discussing a proactive approach regarding a certification process for captive service providers before it is forced on the industry. Membership Committee: – Danel Licari reported for 2014 there are 88 membership renewals to date. Fourteen of those are new captive owners and 7 new service providers. The Membership Committee Is also working on the HCIC Award of Excellence to be awarded to an individual or institution. Pending approval, we are inviting a representative from the Governor’s office to present the award. Marketing Committee: - Scot Sterenberg updated that there are few attendees going to Captive Live. Thus, HCIC will not be exhibiting this year. There is also little interest in the Bay Area marketing trip for the November dates and we will consider moving trip to Spring 2015. Marketing Committee will be meeting with Sanford Saito in October to plan the 2015 schedule. Scot Sterenberg reported that the State has decided on October 6 for the Japan trip. Fay Okamoto thanked Paul Wagner for obtaining information from Captive Live for their event and sponsorship information. Website Committee: Fay Okamoto reported there is nothing new, but the Website Committee seeks additional content. Education Committee: – Christina Kamaka reported that for 2015 the Education Committee will pursue participation in Southern California RIMs chapters’ educational day in September 2015 and in Construction Financial Management Association’s conference to be held in Chicago from June 27 – July 1, 2015. It also decided against attending the World Captive Forum since its focus is offshore and Bermuda. Fay reported that there will be a tabling event on careers in insurance to be held on October 1st at the UH Shidler School of Business . Craig Watanabe will
D. E.
Other Business
Adjournment
represent HCIC. Scot Sterenberg will do a webinar on 12/10/14 regarding “Stress Testing Your Captive”. Japan Marketing: No report Forum 2014 Scholarships: - Fay reported that we are awarding two scholarships for 2014. The rules state that HCIC will award one person per company. We reviewed the Outline of Events for the scholarship recipients. HCIC board members should attend as many of these events to support the recipients. We are seeking two captive owners to serve as buddies. Government Relations Task Force: - Matt Takamine drafted an outline of HCIC ‘s objectives and strategies for government relations initiatives. EC members were asked to review and provide feedback to Matt by 9/17/14. EC would like to meet with the candidates for governor by hosting a meet and greet in downtown for the purpose of establishing a relationship and to make them aware of the HCIC. EC would like approval for a $2,000 budget for these hosted events, starting with candidate Duke Aiona, the HCIC board, EC members, and local captive owners. The format will be an intro by HCIC, its relationship with the State of Hawaii, time with the candidate to share their vision, and meet and greet time at the end. The Forum Board meeting will be scheduled for Monday, October 20th from 3:30 – 4:30pm. Jerry Yoshida will look into “clearing” HCIC Forum event with State Ethics Commission to facilitate acceptance of our Forum VIP invites sent to key legislators. Matt Takamine will put together a dinner for the State of Hawaii Insurance Division for the upcoming Japan trip. The meeting was adjourned at 11:20 am
Membership Committee Report to Executive Committee
Date: 11/12/14
Submitted by: Danel Licari/Ed Haik (Co-Chairs) A. 2014 Membership Renewals
1) 2013 Membership – total 78 members - 44 captive owners (44 X $325 = $14,300)
- 34 service providers (34 X $800 = $27,200) - Total revenues from service provider and owner members for 2013 = $41,500.
2) 2014 Membership – total 89 members to date - 55 captive owners (49 X $325 = $15,925) Count includes six free memberships (3 formations, 3 anniversaries). - 34 service providers (34 X $800 = $27,200) - Total revenues from service provider and owner members for 2014 = $43,125. 4) There are 18 new captive owners who have signed up and 7 new service providers. Non-renewals for 2013 were 4
captive owners and 2 service providers.
B. 2014 Hotel Benefit Renewals 1) Hotels renewed (website updated): Non-renewals: - JW Marriott Ihilani - Sheraton Waikiki - Sheraton Maui - Hilton Hawaiian Village - Royal Hawaiian - Kahala Hotel & Resort - Hawaii Prince - Moana Surfrider - Mauna Kea Resort - Princess Kaiulani - Hapuna Beach Prince - Halekulani - Parc Waikiki (new) - Kapalua Ritz
C. 2014 Membership Drive 1) Free “1st” year membership to new captive formations will continue for 2015. 2) HCIC “Award of Excellence” to continue in 2015. 3) In 2014 there were 25 anniversary captives of which 20 were not HCIC members. Forms were sent out to captive
managers to get owners to sign up for free membership in order to be recognized but unfortunately only 3 captives accepted free membership. Committee to reevaluate.
4) For the fourth year membership committee to have a giveaway drawing to encourage early registration. Earlier this year a second prize giveaway of room nights were awarded for JW Marriott Ihilani. Will ask Kari to follow up with education committee if available again.
5) Invoices for 2015 renewal to be mailed out in early December.
D. Ideas/Works In Progress to Increase Membership 1) Membership Committee is open to all ideas related to increasing membership and prize giveaway ideas for next
year’s drawing. 2) Possible mass mailing to “new” group of potential members. Target service providers that participate at other
domicile forums. Service provider trend seems to be moving towards multi-states. 3) Revisit having the HCIC member application part of captive application process & or ask for regulator
“encouragement” to maintain “member in good standing” could that question “Are you a member of the HCIC in good standing?” be asked in concert with the annual licensing update?
P.O. Box 2815 Honolulu, Hawaii 96803
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Forum Committee Report to the Executive Committee
Date: November 12, 2014
Submitted by: Jason Palmer, Forum Chair Forum Committee Members: Jason Palmer, Christina Kamaka, Jamie Asato, Jill Miura, Ed Haik,
Helen Chang, Scot Sterenberg, Ward Ching, and Kari Nettle Registrations – Final registration numbers are as follows:
Registration Class Actual Cancelled Net
HCIC Member Full Pass 125 17 108 Non‐Member Full Pass 24 1 23 First Time Captive Owner 16 0 16 Speaker – Full Pass 28 1 27 Network Pass 17 0 17 Dinner Guest Pass 22 9 13 VIPs 9 0 9
TOTALS 241 28 213
Our cancelation policy (as modified due to Hurricane Ana) resulted in a total of $6,500 of revenue earned on cancelations, however resulted in about $6,800 of lost revenue. Forum Budget – We are still sorting out the final details, however preliminary results appear to be a net income of approximately $65,000, which would be revenue of $5,000 above budget. Largely this financial result is due to savings on the keynote speaker, in‐house production of the program, and management of the food and beverage counts. Conference Evaluation – The conference committee will review the evaluations and utilize to develop plans for future conferences. Overall the evaluations were very positive, with most sessions obtaining a 4+ rating on a 1 to 5 scale.
P.O. Box 2815 Honolulu, Hawaii 96803