There may be some very good news in the Garden State for skilled insurance professionals, especially risk professionals. Recent reports from Crosby Sherman, the first chief of captives for the New Jersey Department of Banking and Insurance, indicate that a number of captive insurers are on the way in New Jersey and are currently in the process of filing the necessary applications with state regulators.
A captive insurer is a company that provides insurance against a particular business risk for its parent company.
In February, New Jersey Governor Chris Christie signed legislation for captive insurers to headquarter in the state. Not surprisingly, New Jersey’s first captive insurance company was a Prudential Insurance Company of America offshoot. In July, the insurer opened Prudential New Jersey Captive Insurance Company, handling the run-off of New Jersey annuity and life insurance policies. Sequoia Insurance Company of New Jersey, the second captive in New Jersey, opened in November. It will cover the prior liabilities from Hoboken University Medical Center from before the merger.
With the OK by New Jersey’s Governor, predictions are that new, as well as relocated captives, will continue to set up shop in the Garden State. While the newly established players will most certainly be on the lookout for risk and sector-specific insurance professionals, all sorts of positions are likely to open up, including administrative, IT and operations jobs.
In a news report from NJBiz, Sherman played up the state’s “access to sophisticated financial people and the third-party administrators - the service providers to the captive industry, whether it’s the accountant firms, the actuaries.” The NJBiz news report also noted New Jersey State Banking and Insurance Commissioner Thomas Considine as saying, "We are having discussions with dozens of entities.” At press time, a third New Jersey captive was awaiting final approval from Considine's office.