D.C. Finally Hires Captive Director

By Caroline McDonald

NU Online News Service, April 17, 1:42 p.m.EDT?More than two years after its creation, the Districtof Columbia's Captive Insurance Division has finally hired adirector, it was announced.

William P. White, an insurance industry veteran with marketingexpertise, will assume the post in June, the District of ColumbiaInsurance Securities Department said.

"We've been very careful in filling the position," Insurance andSecurities Commissioner Lawrence H. Mirel told NationalUnderwriter. "We wanted to get the right person and it's an areawhere there are not a lot of experienced people out there."

The District of Columbia Captive Insurance Act became law inNovember 2000. Since then, Mr. Mirel said, the program has beenmanaged on a consultant basis by Kathryn Westover, director ofStrategic Risk Solutions in Vermont.

Last year the District of Columbia licensed two captives, andthe department is expecting to license six more this year,officials told National Underwriter.

Mr. Mirel said the new director "has really got to create thisprogram. He's got to become the Len Crouse of the District ofColumbia."

Mr. Crouse is director of captive insurance for the VermontDepartment of Banking, Insurance and Securities. Vermont, thelargest U.S. captive domicile, reported licensing 70 captives in2002 and projects at least 70 for 2003.

"That involves a lot of things," Mr. Mirel continued. "He'sfirst of all got to be the face on our program." The position alsoinvolves a combination of marketing and production.

Mr. White, he said, will have to approve new captive applicantsand be the person attending meetings and conferences on behalf ofthe captive program. He will communicate with brokers, associations"and other organizations that we think could make good use of D.C.captives."

Mr. White's background includes more than 20 years of experiencein the insurance industry, including senior level management,consulting and marketing positions with Milliman & Robertson,MunichRe Group, including American Reinsurance, and GeneralReinsurance Corp.

The department also noted his experience in captive insurance,underwriting, reinsurance and capital markets.

"Mr. White has a background in alternative risk financing,including captives," Mr. Mirel said. He explained that Mr. Whitehas worked with captives as a marketing manager and as aconsultant. "He just knows his stuff and that's what we need," hesaid.

Mr. Mirel said in a statement, "We believe the District ofColumbia, with thousands of associations and affiliateorganizations, is a logical place to establish a captive insurancecompany.

"We now have to make sure that we establish a first rateregulatory system for captives so that they can functioneffectively and their insureds are properly protected."