KEVIN MEAD INTERVIEW
Kevin Mead, former chief executive of the VCIA, talked with Captive International about where the association stands at the start of 2025 – and what needs to be done in the months ahead.
As the world of captive insurance continues to evolve against a backdrop of regulatory flux and shifting political priorities, the Vermont Captive Insurance Association (VCIA) is spearheading a renewed wave of advocacy in Washington, DC.
The initiative is being spearheaded by the VCIA legislative committee, which is leading a carefully orchestrated campaign to re-establish connections, educate lawmakers and secure a stable future for the captive insurance sector.
Speaking in the wake of the association’s upcoming advocacy trip to Capitol Hill on March 18, and before his decision in June 2025 to step down from his position, Mead laid out a multi-pronged strategy that blended relationship-building, policy influence and public education – all vital as the federal landscape becomes increasingly unpredictable.
“We’ve got a threefold purpose,” Mead explained. “First, we want to reconnect with Vermont’s own congressional delegation. They’re already very familiar with captives, especially Senator Peter Welch, who was present when the original Vermont captive legislation was signed 43 years ago. He’s been involved since – first at the state level, then as a member of Congress and now as one of our two senators.”
Welch’s enduring presence in Vermont politics represents an anchor for the industry – a touchstone of continuity in a changing environment. Mead believes re-engaging with such allies is essential, but it’s just the beginning.
“With the change of administration and new leadership within key congressional committees, there’s a fresh crop of decision-makers overseeing financial services,” he continued. “So, we’re launching an awareness campaign – explaining what captives are, what they’re not and what support we need.”
Cannabis and terrorism
Among the VCIA’s specific asks is an early push for the renewal of the Terrorism Risk Insurance Act (TRIA), which is set to expire in the coming years.
The association also raised the issue of the Pandemic Risk Insurance Act (PRIA), which would function as a backstop similar to TRIA but tailored to global health crises.
“TRIA needs to be addressed, and PRIA is something we’d like to put on their radar,” Mead said. “Another issue is access to financial services for cannabis-related businesses. Legislation to improve that access has passed the House but stalled in the Senate. If we can change that, it would not only help those businesses but open the door for forming captives in that sector.”
Currently, Vermont does not host any cannabis-related captives – a reflection, Mead said, of the state’s higher regulatory standards and cautious approach.
“Sandy Bigglestone, our deputy commissioner [of captives at Vermont’s Department of Financial Regulation], likes to say, ‘We work to a higher standard,’” he added. “Right now, there isn’t a cannabis-related captive in Vermont. I think Sandy would be open to it, but the federal framework needs to be more permissive.”
Yet while access and awareness are key, perhaps the most urgent issue is a growing misconception in Washington: that all captives are synonymous with 831(b) micro-captives — the small, tax-advantaged structures that have drawn scrutiny from the IRS in recent years.
“The 831(b) lobby has been very active in Congress,” Mead observed. “Because of that, there’s a tendency to think ‘captives equal 831(b),’ which just isn’t true. We absolutely have 831(b)s in Vermont, but they’re a small slice of our business.”
Vermont’s captives span a wide spectrum – from major corporates to public entities and non-profits — and Mead is keen to ensure policymakers appreciate the diversity and utility of the model.
“Captives are a broad risk management tool. They operate under various regulatory regimes, not just 831(b), and serve many different sectors,” he emphasised. “We need to make sure Congress gets the full picture – otherwise key decisions may be made based on a narrow understanding.”
One such decision involves the Federal Insurance Office (FIO), which some in Washington have proposed eliminating as part of wider deregulation efforts. For Mead, that’s a red flag.
“The FIO, which sits within the Treasury Department, collects data that supports programmes like TRIA,” he explained. “If it disappears, then TRIA could be reconsidered without any meaningful data. That’s dangerous. We’re reminding lawmakers of the value the FIO provides, even if they’re inclined to deregulate.”
Deregulation, while politically attractive in some circles, poses nuanced risks for the captive sector. Mead worries that calls to dismantle oversight mechanisms could inadvertently undermine the industry’s long-term health.
“There’s talk about pushing more power to the NAIC [National Association of Insurance Commissioners] to develop model legislation for states,” he said. “That’s not inherently bad, but we have to watch how the power dynamic evolves between federal and state regulators.”
This is particularly relevant as lawmakers grapple with broader issues such as climate-driven insurance market disruption in places like Florida and California. As traditional insurers exit high-risk markets, captives could become entangled in regulatory experiments designed to plug the gaps. “Captives might get swept up in deregulation efforts aimed at encouraging market innovation in those troubled regions,” Mead warned. “We want to ensure captives remain governed by the robust, state-based system that has served us well.”
In this year’s advocacy trip, Mead was joined by a lean, focused delegation – himself, the VCIA board chair, the chair of the legislative committee and representatives from the association’s advocacy firm. The group met directly with senators, congressional offices and key staffers.
“We kept it small – four or five people per meeting,” he said. “When you bring 30 people, most of them end up waiting in the hallway. This way, we can have meaningful conversations. But we’re already planning to expand next year, possibly turning it into an educational event for members and lawmakers alike.”
After a hiatus caused by the Covid-19 pandemic, the return of the VCIA’s Hill Day is not just symbolic – it’s strategic. The initiative aligns directly with the association’s three-pillar strategic plan, which includes a renewed focus on advocacy. “It’s about increasing our voice, making sure members see the value in our advocacy work and, frankly, shouting from the rooftops that we’re protecting their interests,” Mead said. “We also want to grow the universe of captives – and that means fighting for an environment where they can thrive.”
Asked whether Congress currently understands captives’ role in the insurance market, Mead didn’t hesitate. “In short? No,” he replied. “When people in Congress talk about insurance, it’s usually because their constituents are calling to complain about rising premiums or losing coverage due to wildfires or hurricanes. Captives, being a business tool, don’t generate those kinds of calls.”
That disconnect is what makes the VCIA’s work so vital. Despite captives accounting for an estimated 25% of commercial insurance premiums in the US, the industry’s presence on Capitol Hill is disproportionately small.