Post Date September 24, 2012 - This week nearly two years after the bill was signed allowing New Jersey to license and regulate captive insurance carriers, the New Jersey Insurance Department held a major event on September 19, 2012 . For those of you whom are not familiar with the term Captive Insurance, Captive Insurance is another way of referring to Reinsurance. For example; we represent Personal Service Insurance Company (PSI). Just like you when you purchase auto insurance to transfer risk; an auto insurance company like PSI would do the same. They can buy insurance to help them shift some of their risk. All Auto Insurance Companies do this to keep their balance sheet healthy.
New Jersey Insurance Department Holds Summit For Reinsurance Company Executives
The New Jersey Insurance Department held its first captive insurance summit on Wednesday. The meeting, sponsored by the New Jersey Insurance Department in Trenton, NJ was able to interest approximately 50 major executives from captive auto insurance industry to attend. The New Jersey Insurance Department regulators and representatives discussed New Jerseys’ captive insurance rules, regulations and its administrative processes. New Jersey Insurance Department Representatives also took the opportunity to touch on the emerging trends and complex issues the reinsurance insurance industry faces in the Garden State.
This captive insurance summit was the first held by the New Jersey Insurance Department. It also incorporated two panel discussions. The first Panel Discussion focused on New Jersey State Insurance Laws. What a captive insurance carrier could expect navigating the waters of New Jersey insurance environment as a potential applicant. The second panel discussed the risk issues faced by the insurance industry in New Jersey and how this would affect companies , owners and or stockholders. One issue discussed was the hardening insurance market and how claims exposures have caused premium increases in recent months. Other topics touched on were Reinsurance Reform Act and the Terrorism Risk Insurance Act.Since the roll-out of the NJ’s new insurance laws, four new insurers started doing business in New Jersey. Eight other captive insurance companies are waiting for approval.
If being a captive insurance company will allow New Jersey Insurance companies to have greater control on their risks, many more carriers will consider the Garden State to do business The NJ’s captive insurance bill was signed into law by Governor Christie last year.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 206