S.C. Keeps Strong Captive Focus
Charleston, S.C.
South Carolinas insurance director 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 states new governor.
Ernst Csiszar, in an interview later with National Underwriter, said that if he remains in his position, he has big plans for the captive domicile, which during his tenure has experienced rapid growth. He mentioned links to offshore domiciles as one possibility.
Speaking at the South Carolina Captive Insurance Associations third annual conference, he said that 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 youve been noticed."
The captive industry, he noted, potentially has a huge impact on the states economy. "You look at [fellow captive domicile] Vermont, where 400 [captive] companies have a billion-dollar impact," he said. "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 youll have somebodys ear."
Mr. Csiszar continued that regardless of who is appointed as director of insurance, the captive program is "entrenched. It will go forward. Its not going to change."
He told the conference that he has "expressed to the new governor my interest in continuing in this position." He was named secretary-treasurer by the National Association of Insurance Commissioners last week at the regulator group's meeting in San Diego.
However, he said, even if he is not reappointed, "I guarantee you, Ill be involved with this industry, no matter what."
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. "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. Were 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? So there are some interesting things we can pursue."
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, December 16, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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