Csiszar Says S.C. Will Keep Strong Captive Focus

By Caroline McDonald

NU Online News Service, Dec. 6, 12:25 p.m. EST, Charleston, S.C.? South Carolina's insurance director has reassured a captive insurance group meeting here that the state will continue its interest in captive insurers even if he is not reappointed by the state's new governor.

And Ernst Csiszar in an interview later with National Underwriter said if he remains in his position he has big plans for the captive domicile that during his tenure has experienced rapid growth. He mentioned links to offshore domiciles as one possibility.

Speaking at the South Carolina Captive Insurance Association, Inc.'s third annual conference, he said when he met recently with the transition team of Republican Gov. Mark Sanford, "The very first question I was asked was ?How is the captive program going?' So you've been noticed."

The captive industry, he noted, potentially has a huge impact on the state's economy. "You look at [the captive domicile] Vermont and 400 [captive] companies have a billion-dollar impact.

"Our entire budget here in South Carolina is only $6.5 billion. If you can develop an industry with a billion-dollar impact eventually, I guarantee you'll have somebody's ear," he said.

Mr. Csiszar continued that regardless of who is appointed as director of insurance, the captive program is "entrenched. It will go forward, it's not going to change." However, he said, if he is not appointed "I guarantee you, I'll be involved with this industry, no matter what."

Mr. Csiszar, also announced the signing on of the state's 25^th captive in just two years time. He is expected to find out in the next few days whether Gov. Sanford, who replaced Democrat Jim Hodges, will reappoint him.

He told the conference that he has "expressed to the new governor my interest in continuing in this position."

Mr. Csiszar told National Underwriter that if reappointed to the position he would like to explore relationships with offshore domiciles, particularly Bermuda. "It would make sense for us to have some type of reciprocal relationship," he said.

"Why not, if they have an approved captive in Bermuda that wants to set up a branch operation here, why not have an expedited process of some kind?"

He said there are many instances where the same client needs both an onshore and an offshore captive, "So there are some mutual interests here."

Mr. Csiszar said South Carolina constantly considers what can be done to "make ourselves receptive to captives. We're not adverse to pursuing the politics in Washington to make this happen."

For instance, he continued, as a tax incentive, "Why not have some type of arrangement with the federal government that recognizes Charleston, or a particular district, as a free trade zone for captives?" he asked. "So there are some interesting things we can pursue."

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Csiszar Says S.C. Will Keep Strong Captive Focus

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