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P.O. Box 2815 Honolulu, Hawaii 96803
1
A G E N D A
Meeting of the Executive Committee Wednesday, February 10, 2016 11:00 am (Hawaii Standard Time) 1:00 pm (Pacific Standard Time)
Offices of AON Insurance Managers 201 Merchant Street, 24th floor
Honolulu, HI 96813
Dial +1 (805) 309‐0027 Access Code / Meeting ID: 928‐856‐213
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
HCIC Marketing Committee Report to Executive Committee February 10, 2016
Conference & Trade Show Calendar Date Event Location Hosting Exhibiting Attending March 6 – 8, 2016
CICA Arizona X
March 10 – 11, 2016
HCIC SoCAL Seminar
LA & Orange County
X
April 10 – 13, 2016
RIMS San Diego X
May, 2016 HCIC Chamber of Commerce Presentation
Honolulu X
June 6 – 8, 2016 Hawaii on the Hill
Washington, DC X
September 27 – 29, 2016
NRRA Chicago X
October 11 – 13, 2016
HCIC Forum Honolulu X
November 7 – 11, 2016
HCIC Japan Seminar
Tokyo & Osaka (?) X
Hawaii Captive Insurance CouncilBalance Sheet
As of December 31, 2015 and 2014
December 31, 2015 December 31, 2014
ASSETSBOH Checking 66,111 82,835 BOH Money Market 450,471 100,141 FHB Certificate of Deposit - 100,000 Time Certificate of Deposit - 250,000
516,582 532,976
Accounts Receivable 27,620 15,066 Deposits - Forum 5,000 1,000 Prepaid expense - Forum 455 455 Prepaid expense - Other 500 500
TOTAL ASSETS 550,157 549,997
LIABILITIES & EQUITYAccounts 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
EquityOpening Bal Equity 7,519 7,519 Retained Earnings 493,785 461,477 Net Income 26,561 65,838
Total Equity 527,865 534,834
TOTAL LIABILITIES & EQUITY 550,157 549,997
Hawaii Captive Insurance CouncilIncome Statement
For the Periods Ended December 31, 2015 and 2014
Period Ended Annual Over/ Period EndedDecember 31, Budget (Under) December 31,
2015 FY 2015 Budget 2014
Income:Forum
Sponsors 74,000 82,000 (8,000) 55,000 Registration 155,375 159,500 (4,125) 111,125
Dues 20,775 22,200 (1,425) 26,050 Membership Awards Sponsorship - - 5,000 Japan Seminar Sponsorships 23,000 23,000 - - Interest 321 250 71 223
Total Income 273,471 286,950 (13,479) 197,398
Expenses:Education:
Forum 151,152 141,500 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 2,500 927 - RIMS Dinner - 1,000 (1,000) -
Industry Liason: - 2,500 (2,500) 853 Membership 1,581 1,085 496 1,244 Website 399 2,750 (2,351) 230 Legislative: -
Legislative Expenses - 1,100 (1,100) - Lobbying Expenses - - - 214 Hawaii Charity Annual Fees 410 - 410 -
Operating: - HCIC Coordinator Services 31,303 30,319 985 30,318 Accounting Services 1,411 2,000 (589) 2,481 Insurance 1,085 1,100 (15) 1,069 Conference Line for EC & BOD Meeting 517 750 (233) 621 Social Functions 1,180 500 680 487 Miscellaneous 60 25 35 - Storage Fees - 325 (325) - PO Box - 100 (100) - Utilities 176 250 (74) 197 Meetings 198 750 (552) 205 Banking Fees 13 75 (62) 39 Credit Card Fees 346 - 346 2 Postage 6 - 6 -
Total Expenses 246,910 243,684 3,227 131,560
Net Income (Loss) 26,561 43,267 (16,706) 65,838
-
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 @ $8,000 - 3 @ $2,000 - 5 @ $1,000 2) Projected page count = 32 pages - Proposed flatplan as of 2-9-16 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
P.O. Box 2815 Honolulu, Hawaii 96803
Front Cover
1
State of Haw aii
HID Mess Gov
HCIC Congress
Contents
HD State of
Haw aii Cap Industry
2 3 4 5 6 7 8 9
Types of Captives -
HCIC
HCIC - EB Case Study
PW
HCIC - EB Case Study
PW
HCIC - EB Case Study
PW
HCIC - EB Case Study
PW
HCIC - Then and Now
HID - In house exams
10 11 12 13 14 15 16 17
Artex
Artex .. . .
.
.
Willis Willis Audit RTInvestment
RTPerr & Knight
18 19 20 21 22 23 24 25
HID Japanese Captives
HID Japanese Captives
HCIC RRG Case Study
HCIC RRG Case Study
Service Directory Listings
About HCICHCIC
Advert
26 27 28 29 30 31 32
Willis HID Commiis
Ad
Perr & Knight
Message fr
HIDpremium
HID trend &
HIDGeog
HIDIndustry
Ad
Ad
Ad
HCIC Beyond Captives
Willis HID Commiis
Ad
Perr & Knight
Message fr
HIDpremium
HID trend &
HIDGeog
HIDIndustry
Ad
Ad
Ad
HCIC Beyond Captives
Ad
HCIC CALIFORNIA SEMINARS THE HAWAII CAPTIVE INSURANCE COUNCIL INVITES YOU
TO ATTEND TWO SOUTHERN CALIFORNIA SEMINARS
MARCH 10TH, THURSDAY 9:00 AM - 12:00 PM Sheraton Universal City, Terrace B/C 333 Universal Hollywood Drive Universal City, CA 91608
MARCH 11TH, FRIDAY 9:00 AM - 12:00 PM Center Club Orange County, Mozart Room, Garden Level 650 Town Center Drive Costa Mesa, CA 92626 No seminar fee. Parking included. Business Casual Attire RSVP [email protected] before March 1st
AGENDA 8:30am
Check In
9:00am - 10:15am
Session I
Hawaii Captive Update and
831b Captive Update
~
10:15am - 10:45am
Networking Break
~
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
P.O. Box 2815. Honolulu, Hawaii 96803 . www.hawaiicaptives.com
P.O. Box 2815 Honolulu, Hawaii 96803
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 96813 Attendees: Invited Guests
Paul Wagner – Teleconference Christina Kamaka Jamie Asato Excused: Ward Ching Matthew Takamine Jason Palmer Ryan Nobriga
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 email. 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.
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 email.
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)
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 12‐18 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.
o
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
P.O. Box 2815 Honolulu, Hawaii 96803
Membership Committee Report to Executive Committee
Date: 02/10/16
Submitted by: Danel Licari/Ed Haik (Co-Chairs) A. 2016 Membership Renewals
1) 2016 Membership – total 46 members - 28 captive owners (28 X $325 = $9,100).
- 18 service providers (18 X $800 = $14,400) - Total revenues from service provider and owner members for 2016 = $23,500. - This update is from February 1, 2016.
2) 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 2014. - 31 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. 2016 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. 2016 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 “1st” year membership to new captive formations will continue for 2016. Eight formations for the 1st & 2nd
quarters of 2015 were offered “free” memberships last year and none signed up. Eleven formations for the 3rd & 4th quarters of 2015 were recently offered “free” memberships for 2016. Waiting for replies. Membership committee to evaluate continuance of this program.
3) HCIC “Award of Excellence” to continue in 2016. 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 2015.
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?
P.O. Box 2815 Honolulu, Hawaii 96803
o
Date: February 10, 2016
Submitted by: Jason Palmer, TreasurerFinance 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 establishedin 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.
P.O. Box 2815Honolulu, Hawaii 96803
Finance Committee Report to the Board of Directors
