Media Centre Comment: A captive market in South Carolina

Ann West

A captive market in South Carolina

Ann West discusses the State's standing in the captive arena, its role in the development of the SPFC market and her experience in the insurance industry.

Can you provide an overview of your role at Kane?

Ann: I am the operations manager for Kane's South Carolina office. In this role, I am responsible for the day-to-day operations of our office, and manage our client relationships, plus our relations with the regulators and wider captive community, in the various domiciles we serve. We manage captives domiciled in South Carolina, Missouri, Louisiana and Delaware.

Our clients include pure captives, special purpose financial captives and risk retention groups; while the industries covered range from healthcare and construction to entrepreneurs and life insurance companies. We manage all aspects of the regulatory compliance reporting, administrative and financial functions for each of our captives.

What is your background in the insurance industry?

Ann: I have worked in the insurance and accounting sectors for over 24 years. I am a licensed CPA in South Carolina and Georgia. In 2005, I joined HSBC (now Kane) to open its South Carolina office.

Prior to that, I worked for a CPA firm in Charleston, managing their alternative risk transfer audits and leading their captive insurance initiative. I worked in public accounting for over nine years, primarily auditing captives, insurance pools and trusts.

In addition, I worked for a large insurance company where I headed up a team of specialists responsible for managing the southern claim block and its related reserves.

South Carolina has established itself as a leading domicile in the captive market. How would you summarize its standing in the industry?

Ann: South Carolina has established itself as one of the leading captive domiciles, both from a national and an international perspective.

There are a number of factors that have contributed to its prominent market position, including: the strength of its regulatory infrastructure; the expertise and experience of the regulators and the commitment of all players within the market to creating an environment conducive to the overall success of captives in the domicile. South Carolina has also endeavored to position itself at the forefront of innovation within the captive arena, seeking to create a market which responds to the needs of the community it serves.

Central to South Carolina's overall success, I would say, is its ability to create an environment based around partnership. This partnership spans the parent company, the service provider and the market regulators, and encapsulates a wealth of knowledge in all aspects of the captive market.

The State has been at the forefront of the growth of the special purpose financial captive. What has enabled it to achieve this leading position?

Ann: The role that South Carolina has played in helping to develop the market for special purpose financial vehicles is a prime example of the domicile’s aim to stimulate captive growth and innovation.

The State recognized the industry's need to access alternative forms of capital and set about addressing this. Building the foundations of the SPFC market began back in 2000 with the beginnings of the legislative framework required, and resulted in the State earning the accolade of being the first onshore domicile to complete an insurance securitization transaction using a captive structure in 2003. In 2004, it secured the foundations with the implementation of specific SPFC legislation.

Since then, South Carolina has firmly established itself as a domicile of choice for the formation of such structures. Companies are not only confident in the capabilities and experience of those in the market, but also recognize the long-term commitment to the continued success of this market segment.

Kane has built a strong reputation for client satisfaction in the South Carolina captive market. How would you say you and your team have achieved this?

Ann: Just like each captive is unique, so each of our clients is unique - this approach has been key to our success in achieving client satisfaction. We listen closely to our clients, assess their specific requirements and ensure that each captive solution is customized to meet their particular risk needs.

We are also very proactive in the way we interact with the wider captive community. My team and I have sought to build positive relationships with both regulators and other service providers in the sector. For example, we are all involved in some way in the activities of the South Carolina Captive Insurance Association - in fact last year I was President of the Association and this year I am Chairman of the Board. In our view, it is imperative that we work collectively as an industry to increase the overall benefits which the captive offers to our clients. We all need to play our part in maintaining South Carolina's lofty position in the captive market, and by so doing create a more advantageous environment for our clients.

Ann West, CPA ACI, Operations Manager and Vice President, Kane (USA)
Email: ann.west@kane-group.com