The newly-formed Captive Insurance Group of New Jersey (CIGNJ) will be prioritising education, networking and legislative initiatives, with the expectation being that through its efforts the state will double its captive numbers by the close of 2014.
That is the word from Sheila Small, president of the CIGNJ, who said that the new association already enjoys considerable industry support. She said that the new group has received support from Ken Kobylowski, commissioner of the NJ Department of Banking and Insurance and has already secured three gold and eight bronze founding members. The numbers are indicative of the confidence the industry places in Small’s leadership.
Small said that education and programming would be a leading focus for the association, with its inaugural October 16th event the first in a programme of educational events. The group’s second event will take place on January 8th and will feature speakers and sessions exploring the captive concept and its value to New Jersey business.
She said that the group would also be establishing a legislative committee to promote captive developments in the state legislature, and will play an active role in marketing New Jersey and the captive concept. The group even has its own LinkedIn group.
“By the end of November we anticipate 15 captives calling New Jersey home. I would love and expect to see that number double by the end of 2014. The development of captives in the state is good for New Jersey and the captive industry here”.
Small said that the pipeline for new entrants is strong, with “four or five captives” looking to establish themselves in New Jersey in the coming months. She said that New Jersey is reaching a point where its “critical mass will see captive formations accelerate” and Small’s appointment certainly suggests a drive for greater captive numbers.
Small highlighted privately held local companies as being an area of interest for the New Jersey captive industry, arguing that captives can help such companies “avoid cyclical disruptions that are a feature of the commercial market”. She added with a concentration of Fortune100 companies and located between New York and Pennsylvania—which has no captive statute on its books—New Jersey is in a strong position to benefit from captive interest.
Asked whether she was concerned about the rising number of states with captive legislation, Small was unfazed. “I would compare it to a mall having two anchor stores, rather than one. By offering the market more options, we will be able to bring in more business. Frankly, there are more opportunities in growing the captive market than competing over existing business.”
CIGNJ, New Jersey, captive insurance, formations, US