Arizona Seeks New Captive Regulator

Former administrator joins captive managementfirm

Although serving as the captive administrator for the ArizonaInsurance Departments captive division has been a positiveexperience for Richard Marshall, he is looking ahead to returningto the private sector, effective this week.

Mr. Marshall has held his regulatory position since 2002 and wasinstrumental in the growth of the domicile, which now has 24licensed captive insurers. Under his leadership, the domicileexpanded its captive regulations, adopting legislation that allowsrisk retention groups, agency captives and protected cell captives.It also permits some direct writing of workers' compensation.

“I was here for a couple of years; I pretty much accomplishedeverything I wanted,” he told National Underwriter. “I'mbasically a proactive person, not a reactionary person, so hereyou're reacting to what's going on out there.”

He said there were “several opportunities along the way,” butthis was an offer he decided he could not pass up. He will beworking with Camel Back Captive and Risk Management Services, LLC,which, he said, will provide all the services that go with captivemanagement, “either on a bundled or unbundled basis.”

Although there is a one-year statute of limitations preventinghim from working with clients already doing business with theArizona Insurance Department, “I wouldn't go after them anyway,” hesaid. “It's just not my style.”

The advantage of having sat in the regulator's seat reviewingapplications is that “basically I know where the holes are. So Iwill have no excuse for not submitting a complete application,because it's my rules.”

Judie Harrington-Carlisle, executive director of the ArizonaCaptive Insurance Association, explained that “as happens sometimesin the regulatory community, he got an offer he couldn't refusefrom the private sector. He is going to be heading up his owncaptive management company,” she said, noting that Mr. Marshallwill be “part of the little insurance community here inPhoenix.”

Mike Mead, vice president of the Arizona association, said hewas not completely surprised by the announcement, “because Dick hasspent many years on the commercial side, and it was an interestingdeparture for him to become a regulator.” Mr. Mead, who ispresident of Crusader Captive Services, LLC in Chicago, anewly formed umbrella for several domicile-specific managementcompanies, added that Mr. Marshall has “done a terrificjob for Arizona, but I'm not surprised he wanted to switch back tothe commercial side.”

Mr. Mead said the ideal profile for Mr. Marshalls replacementwould be “someone in their mid-50s who can take early or fullretirement and who wants to move to Arizona. My guess is that thereare probably several people in that category.”

Since his resignation, the department has been actively involvedin managing the captive division and said in a statement that Mr.Marshall will continue to aid in the departments transition to anew administrator.

Ms. Harrington-Carlisle said the insurance department is“extremely supportive of keeping this captive program going. It isvery high on their radar screen.”

Mr. Mead noted he is encouraged that Christina Urias, Arizona'sinsurance director, has been so supportive of the captiveprogram.

“We're losing a valuable asset in Dick. However, he is leavingthe program in excellent shape for the future,” Ms. Urias said in astatement. “I am committed to continuing the growth of the captiveinsurance program and getting the word out that Arizona is awelcome home to the captive industry.”

The department urged prospective captive applicants to visit theWeb site for more information at www.id.state.az.us.

Reproduced from National Underwriter Edition, June 4, 2004.Copyright 2004 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.