14 November 2018Analysis

VCIA seeks to build ties with China captive sector

The Vermont Captive Insurance Association (VCIA) is looking to build its relationship with the Chinese insurance market and aid China’s nascent captive sector.

VCIA president Rich Smith will travel to Tianjin to participate on a conference panel at the 2018 Jing-Jin-Ji International Insurance Forum on November 17. Here, he will discuss topic including the comparison of captive rules in Asia, the US and Europe, best practices, and the latest innovations.

"It is an honour to be invited to speak in China,” said Smith. “China has a proactive interest in alternative risk transfer and Vermont is constantly looking for ways to strengthen the captive industry as a whole.”

"A positive connection with China's early captive industry could help to enhance VCIA's leadership position in the captive insurance industry."

Delegates of China’s insurance sector had attended and spoke on a panel at the VCIA Annual Conference in August 2018.

Zheng Xiaozhe, member of the board and general manager of Cosco Shipping Captive Insurance, attended the event to gather knowledge to aid China's nascent captive sector. Following this connection at VCIA, Smith was invited to speak in China.

During Smith’s visit to Tianjin, he is also expected to speak with other insurance leaders from Hong Kong, Singapore, Malaysia and Guernsey.

Smith had suggested the currently small captive sector in China looks to Vermont for captive expertise.

Vermont is not the only captive domicile to engage with China, as Guernsey has signed numerous Memoranda of Understanding (MoUs) with all of China’s financial services regulators and as many as 10 MoUs and cooperation statements with industry bodies, representative associations and other agencies.