Captive industry facing staff challenges
Captive insurance organisations are under pressure to keep up with evolving risks, amid mounting regulation, and are experiencing difficulty finding professionals with the right skills.
Those were some of the challenges expressed to AM Best TV in a string of interviews at the Bermuda Captive Conference, taking place at the Fairmont Southampton this week.
Paul Owens, chief executive officer of Willis Towers Watson’s global captive practice, stressed two challenges, acquiring talent and regulation.
“It is increasingly difficult to get the right staff in the locations you need them,” Mr Owens said. “The locations are becoming very expensive. The other challenge is regulation. In Bermuda, we’ve seen increasing regulation, with the code of conduct — all the right things to do.
“Also there is BEPS — base erosion and profit shifting — the OECD is very serious about that. And for domiciles, it shouldn’t be seen as an inhibitor, it should be seen as a good thing where everyone can be on the same level playing ground.”
Brad Meindersma, vice-president at JLT Insurance Managers (Bermuda), said: “I think there are a number of factors that combine to make it a larger challenge in the ever-evolving tax and regulatory regimes.
“The global look at offshore and onshore domiciles and their benefits, as well as staying on top of the changing nature and environment of the regulatory and tax worlds is quite challenging.”
Mike Parrish, head of business development, Marsh Management Services, Bermuda, said, captives need to focus on remaining relevant to the corporation.
“Many captives have been in operation for a number of years, and the risk and insurance environments have changed,” Mr Parrish said.
“Captive managers and captives generally must ensure to stay abreast of developments, which are relevant to the parent.”
• AM Best is providing video coverage of the conference at www.ambest.tv/bcc18
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