A G E N D A. Meeting of the Executive Committee Wednesday, February 10, :00 am (Hawaii Standard Time) 1:00 pm (Pacific Standard Time)

Transcription

1 P.O. Box 2815 Honolulu, Hawaii A G E N D A Meeting of the Executive Committee Wednesday, February 10, :00 am (Hawaii Standard Time) 1:00 pm (Pacific Standard Time) Offices of AON Insurance Managers 201 Merchant Street, 24th floor Honolulu, HI Dial +1 (805) Access Code / Meeting ID: A. Call to Order B. Approval of the November 18, 2015 Executive Committee meeting minutes C. Committee Reports Legislative Membership Finance Marketing Website Education & Forum Japan Marketing Industry Liaison Update Government Relations Update D. Other Business (if not otherwise covered by committee reports) Captive Review Annual Sponsorship Strategic Planning Meeting June 2016 (Possibly 6/29 or 6/30) Plan for Upcoming Events o CICA March 6 8, Scottsdale AZ o CPCU Society Annual Meeting September 17 20, Honolulu, HI Southern California seminars E. Adjournment 1

2 HCIC Marketing Committee Report to Executive Committee February 10, 2016 Conference & Trade Show Calendar Date Event Location Hosting Exhibiting Attending March 6 8, CICA Arizona X 2016 March 10 11, HCIC SoCAL LA & Orange X 2016 Seminar County April 10 13, RIMS San Diego X 2016 May, 2016 HCIC Chamber of Honolulu X Commerce Presentation June 6 8, 2016 Hawaii on the Washington, DC X Hill September 27 NRRA Chicago X 29, 2016 October 11 13, 2016 HCIC Forum Honolulu X November 7 11, 2016 HCIC Japan Seminar Tokyo & Osaka (?) X

3 Hawaii Captive Insurance Council Balance Sheet As of December 31, 2015 and 2014 December 31, 2015 December 31, 2014 ASSETS BOH Checking 66,111 82,835 BOH Money Market 450, ,141 FHB Certificate of Deposit - 100,000 Time Certificate of Deposit - 250, , ,976 Accounts Receivable 27,620 15,066 Deposits - Forum 5,000 1,000 Prepaid expense - Forum Prepaid expense - Other TOTAL ASSETS 550, ,997 LIABILITIES & EQUITY Accounts Payable 5,396 - Accrued Expenses 7,896 5,538 Dues Recd in Adv - Owners 2,600 1,625 Dues Recd in Adv - Service Prov 6,400 8,000 Total Liabilities 22,292 15,163 Equity Opening Bal Equity 7,519 7,519 Retained Earnings 493, ,477 Net Income 26,561 65,838 Total Equity 527, ,834 TOTAL LIABILITIES & EQUITY 550, ,997

4 Hawaii Captive Insurance Council Income Statement For the Periods Ended December 31, 2015 and 2014 Period Ended Annual Over/ Period Ended December 31, Budget (Under) December 31, 2015 FY 2015 Budget 2014 Income: Forum Sponsors 74,000 82,000 (8,000) 55,000 Registration 155, ,500 (4,125) 111,125 Dues 20,775 22,200 (1,425) 26,050 Membership Awards Sponsorship - - 5,000 Japan Seminar Sponsorships 23,000 23, Interest Total Income 273, ,950 (13,479) 197,398 Expenses: Education: Forum 151, ,500 9,652 89,256 Seminars/Webinar - 1,105 (1,105) - Scholarships 4,972 8,250 (3,278) 1,844 Equipment 3,200 (3,200) Bad Debt Expense - - Marketing: - Japan Seminar 21,594 23,000 (1,406) - Hawaii on the Hill 5,000 (5,000) Promotions (newsletter & pubs) 25,000 7,500 17,500 - Trade Shows & Advertising 2,080 7,000 (4,920) 2,500 Marketing 3,427 2, RIMS Dinner - 1,000 (1,000) - Industry Liason: - 2,500 (2,500) 853 Membership 1,581 1, ,244 Website 399 2,750 (2,351) 230 Legislative: - Legislative Expenses - 1,100 (1,100) - Lobbying Expenses Hawaii Charity Annual Fees Operating: - HCIC Coordinator Services 31,303 30, ,318 Accounting Services 1,411 2,000 (589) 2,481 Insurance 1,085 1,100 (15) 1,069 Conference Line for EC & BOD Me (233) 621 Social Functions 1, Miscellaneous Storage Fees (325) - PO Box (100) - Utilities (74) 197 Meetings (552) 205 Banking Fees (62) 39 Credit Card Fees Postage Total Expenses 246, ,684 3, ,560 Net Income (Loss) 26,561 43,267 (16,706) 65,838 -

5 P.O. Box 2815 Honolulu, Hawaii Captive Review, LA Seminar Report to Executive Committee Date: 02/10/2016 Submitted by: Fay Okamoto A. Captive Review Update 1) 9 participants, $19,000 in sponsorship fees - $1,000 2) Projected page count = 32 pages - Proposed flatplan as of on next page - Ads = 4.25 pages, plus front cover, service directory listing, & inside back cover (About HCIC) - Editorial Content = about 25 pages 3) Cover art options B. Southern California seminars 1) March 10 & 11 (dovetailing CICA March 6-8) 2) Est. cost $6,500 for two sessions, ½ day each 3) Draft flyer attached; flyer to be distributed after EC meeting

6 Front Cover 1 State of Haw aii Mess Gov Willis HCIC Congress Commiis Contents A d Messag e fr terr & Knight HD State of Haw aii Cap Industry premium Geog Industry trend & Types of Captives - HCIC A d A d A d A d HCIC - EB Case Study PW HCIC - EB Case Study PW HCIC - EB Case Study PW HCIC - EB Case Study PW HCIC - Then and Now - In house exams Artex Artex.... HCIC. Beyond. Captives Willis Willis Audit RT Investment RT Perr & Knight Japanese Captives Japanese Captives HCIC RRG HCIC RRG Case Study Case Study Service Directory Listings About HCIC HCIC Advert

7 HCIC CALIFORNIA SEMINARS AGENDA 8:30am Check In 9:00am - 10:15am Session I THE HAWAII CAPTIVE INSURANCE COUNCIL INVITES YOU TO ATTEND TWO SOUTHERN CALIFORNIA SEMINARS Hawaii Captive Update and 831b Captive Update ~ 10:15am - 10:45am Networking Break MARCH 10TH, THURSDAY 9:00 AM - 12:00 PM Sheraton Universal City, Terrace B/C 333 Universal Hollywood Drive Universal City, CA MARCH 11TH, FRIDAY 9:00 AM - 12:00 PM Center Club Orange County, Mozart Room, Garden Level 650 Town Center Drive Costa Mesa, CA No seminar fee. Parking included. Business Casual Attire RSVP info@hawaiicaptives.com before March 1st P.O. Box Honolulu, Hawaii ~ 10:45am - 12:00pm Session II The Power of Captives Case Study: Employee Benefits & ERM PANELIST Jeremy Huish, Artex Risk Solutions Sanford Saito, State of Hawaii Paul Shimomoto, Char Hamilton Yoshida & Shimomoto Paul Wagner, AGL Resources SPONSORS Artex Risk Solutions Bank of Hawaii Beecher Carlson Willis Towers Watson

8 P.O. Box 2815 Honolulu, Hawaii Minutes Hawaii Captive Insurance Council Corporation Meeting of the Executive Committee Wednesday, November 18, 2015 Honolulu, HI 11:00 am (Hawaii Standard Time) 1:00pm (Pacific Standard Time) Offices of AON Insurance Managers 201 Merchant Street, 24th Floor Honolulu, Hawaii Attendees: Paul Wagner Teleconference Christina Kamaka Jamie Asato Excused: Ward Ching Matthew Takamine Jason Palmer Ryan Nobriga Invited Guests Fay Okamoto Scot Sterenberg Ed Haik Gerald Yoshida Teleconference Agenda Item Comments/Follow Up A. Call to order Meeting was called to order by Paul Wagner at 11:03 am. B. Minutes of the October 14, 2015 Executive Committee meeting Approved as presented. C. Committee Reports Legislative Committee: Gerald Yoshida reported. See committee report. Education Committee: Fay reported and also referenced her . HCIC will be submitting two sessions for consideration for the CPCU Conference 2016 National Conference, (1) Captive Basics; and (2) Cross Border International Risk Financing. CPCU will be a co sponsor of the sessions.

9 Fay also reported that Sanford was approached by someone from the CPCU Institute to participate on a panel at the conference, so Hawaii has multiple opportunities to be represented at the conference. Captive Review (CR): Fay provided the revised Contract / Invoice received. See attached. Fay & Paul stated that revisions were made based on their initial review. Will also have someone with a legal background also review before execution. Draft of Sponsorship Form, including CR is also attached. Kari is working on final formatting. Target distribution before Thanksgiving. Phone campaign since this is new, and we are running on tight deadlines, the ad hoc committee (Committee) will call members to get early indications of CR participation, as well as sponsor commitments if possible. Committee has started on a list of possible articles / content; and will circulate the list for the Dec 9 Board meeting. If the group has anything specific they d like to include on the list, let the Committee know. Holiday Lunch: Fay provided and update for Jerelyn. Invite will go out by 11/19/15. The non profit organization selected for the Holiday lunch is Mooseheart, and their information will be on the flyer. Menu will be beef & fish; with a vegetarian option, which they will need to elect in their RSVP. Parking validation included for 2.5 hours, and extra validation will be available for those staying for the Board meeting. Cost is $35 per person; HCIC comps captive owners, Hawaii Insurance Division, Kari, David Taylor and Gordon Nishiki. HCIC also covers the actual cost over $35 (which is estimated at $1.65 per person). Scot Sterenberg to put together a post Forum newsletter to distribute to membership. Japan seminar: Paul Shimomoto provided the following information via . Invitees: 135 (some of these were not initially or officially invited) Actual attendees: 127 (94% of all invitees) for seminar; 133 total (6 only came to the reception)

10 Category 1 Prospects (looking to form a captive w/in 6 12 mos.) : 13 different companies represented (18 actual representatives) Category 2 Prospects (looking to form a captive w/in mos.): 16 different companies represented (27 actual representatives) Total Category 1 & Cat 2 Prospects Attending Seminar: 45 (35% of all attendees) representing 29 different prospect companies Total Category 3 Referral Sources Attending Seminar (Japan promoters & brokers): 33 (26% of all attendees) Total Category 4 Japan Fronting Company Representatives Attending Seminar: 34 (27% of all attendees) Total Category 5 Japanese Insurance Agencies/Agents Attending Seminar: 3 (2% of all attendees) Total Hawaii Based Service Providers & SOH Representatives Attending Seminar: 20 (16% of all attendees) Total Cost of Banquet Imperial Hotel: JPY 2,124,792 ($17,343.53) using a conversion rate of 122.5:1. Note that final costs are still being calculated and a final financial reconciliation will be reported to the HCIC Board in a formal report. So far, all indications are that this was a resounding success. More info to come as I reconcile everything and gather feedback. At this point, Scot & Ed were excused and meeting moved into Executive Session. D. Other Business Proposed Officer slate: Chair Matthew Takamine Vice Chair Ward Ching President Paul Wagner Vice President Ryan Nobriga Vice President Cindy Belcher Treasurer Jason Palmer Asst Treasurer Alan Matsui Secretary Jamie Asato Asst Secretary Christina Kamaka E. Adjournment The meeting was adjourned at 11:54 am.

11 o P.O. Box 2815 Honolulu, Hawaii Education Committee Report to the Executive Committee Date: February 10, 2016 Submitted by: Jill Miura Education Committee Members: Christina Kamaka, Craig Watanabe, Jamie Asato, Ryan Nobriga, Jill Miura A. Project Coordinator Contract Executed addendum to existing contract for o Minor wording change in Independent Contractor Status section o Compensation adjustment commencing July 1, 2015 B. Webinars Industry Update at the National and Local Levels January 13, 2016 o Sanford Saito & Paul Shimomoto, speakers; Jamie Asato, coordinator o 31 attendees; 10 owners, 21 service providers Next webinar to be held in March C. Conference Session Submissions CICA session selected o Power of Captives: Employee Benefits and ERM Case Study; session selected for pre conference promotion o Paul Wagner, AGL, and James Cortiglia, Zurich CPCU Society Annual Meeting session submitted o Captive Insurance Bootcamp due to hear back at the end of March o Ward Ching, Aon, Craig Watanabe, SRS D. Forum 2016 October 12 14, 2016 at the Hilton Hawaiian Village Committee established E. Forum 2017 to be held on Maui RFP issued; awaiting responses Solicited The Ritz Carlton Kapalua, Grand Wailea, Kea Lani, Sheraton Maui and Hyatt Regency Maui

12 P.O. Box 2815 Honolulu, Hawaii Membership Committee Report to Executive Committee Date: 02/10/16 Submitted by: Danel Licari/Ed Haik (Co-Chairs) A Membership Renewals 1) 2016 Membership total 46 members - 28 captive owners (28 X $325 = $9,100) service providers (18 X $800 = $14,400) - Total revenues from service provider and owner members for 2016 = $23, This update is from February 1, ) 2015 Membership total 86 members to date - 55 captive owners (49 X $325 = $15,925) Count includes six free memberships (4 formations, 1 forum registration, and 1 anniversaries). The count is the same as service providers (31 X $800 = $24,800). Three less than prior year. - Total revenues from service provider and owner members for 2015 = $40,725. B Hotel Benefit Renewals 1) Hotels renewed (website updated): Pending renewals: - Grand Hyatt Kauai (new) - Sheraton Waikiki - Hawaii Prince - Trump (new) - Royal Hawaiian - Hapuna Beach Prince - Halekulani - Moana Surfrider - Mauna Kea Resort - The Kahala Resort - Princess Kaiulani - Hilton Hawaiian Village - Parc Waikiki - Ritz Carlton Kapalua C Membership Drive 1) Fourth year for early registration contest. Prize for this year is a $500 cash card. Winner to be picked February 14. 2) Free 1 st year membership to new captive formations will continue for Eight formations for the 1 st & 2 nd quarters of 2015 were offered free memberships last year and none signed up. Eleven formations for the 3 rd & 4 th quarters of 2015 were recently offered free memberships for Waiting for replies. Membership committee to evaluate continuance of this program. 3) HCIC Award of Excellence to continue in Two awards to be presented at forum. One for an individual and the other for a company. 4) Membership committee to evaluate recruitment of new captive owner members through anniversary acknowledgement and gift. Only one captive signed up in D. Ideas/Works In Progress to Increase Membership 1) Membership Committee is open to all ideas related to increasing membership and prize giveaway ideas for next year s drawing. 2) Possible mass mailing to new group of potential members. Target service providers that participate at other domicile forums. Service provider trend seems to be moving towards multi-states. 3) Revisit having the HCIC member application part of captive application process & or ask for regulator encouragement to maintain member in good standing could that question Are you a member of the HCIC in good standing? be asked in concert with the annual licensing update?

13 o P.O. Box 2815 Honolulu, Hawaii Finance Committee Report to the Board of Directors Date: February 10, 2016 Submitted by: Jason Palmer, Treasurer Finance Committee Members: Jason Palmer, Treasurer Ryan Nobriga, Assistant Treasurer Christina Kamaka Jamie Asato Information submitted below are based upon financial statements prepared as of December 31, 2015 Review of Cash Portfolio As of December 31, 2015 the Company had approximately $517,000 in cash and cash equivalents invested as follows: Type of Cash & Cash Equivalents Institution Amount as of 9/30/2015 Checking Account, with no return Bank of Hawaii $66,111 Money Market Account, yielding.07% Bank of Hawaii $450,471 The Finance Committee is working with the bank of Hawaii to establish a brokerage account in the amount of $250,000 which will contain funds of 60% equities and 40% fixed income securities. Additionally, and account will be established in the amount of $200,000 and will consisted of 4 fixed income treasury notes to mature annually. Financial Statements as of December 31, 2015 Total assets and total liabilities and equity have remained about the same in comparison to December 31, 2014, however have reduced by $75,000 when compared to June 30, 2015, the Company s fiscal year end, For the period ended December 31, 2015 the organization had a net income of approximately $27,000, against an expected budgeted net income of approximately $43,000. This results in the Company being over budget by approximately $17,000. The majority of this downward movement is the 2015 Forum missing budget by about $22,000. Finance Due Dates all finance deadlines have been met as of the date of this report.