Energy Captive Management's Megan Ogden Sees Cell Opportunities

Megan Ogden is the controller of Energy Captive Management (ECM) in Charleston, South Carolina. ECM provides management services, including accounting, underwriting, and regulatory, to Energy Insurance Services (EIS) and its members. Ms. Ogden has more than 15 years of captive insurance experience in captive management and alternative risk financing. In this interview, Ms. Ogden discusses the advantages of cell captives and how they operate.

When did you get into the captive business?

I started my career in the captive insurance industry in 2005 with Marsh Management Services in the Cayman Islands.

Tell me about your responsibilities at Energy Captive Management.

I am currently the controller of Energy Captive Management and responsible for the day-to-day management of Energy Insurance Services cells and support of ECM. This includes preparation of financial statements, reconciliation of bank accounts and general ledger accounts, insurance policy preparation, regulatory filings, financial audit and SOC 1 audit coordination, and annual meetings with EIS Members. In March 2022, Randy Martin, the current chief operating officer of Energy Insurance Service, will be retiring, and I will take this role.

What services does Energy Captive Management provide?

Energy Captive Management is a captive insurance management company formed to serve the business needs of Energy Insurance Services. ECM provides captive management services related to the formation and licensing of EIS cells and ongoing management of the cells, including accounting, regulatory, and insurance services.

Do you only handle cell captives?

ECM personnel currently support EIS full-time, but we have the capability and expertise to manage additional captives, including pure captives, group captives, and association captives.

How do captive cells operate?

Cell captives are entities consisting of a core and a number of cell entities, which are kept legally separate from each other. The cells operate as their own unit with segregated assets and liabilities that cannot be utilized to meet the obligations of another cell. Financial statements are prepared for each cell, and each cell has its own bank account(s). There may be a common board of directors for all cells, or cells may have their own unique board or advisory committee. EIS has formed 37 cells to date and currently has 19 active cells.

To whom are cell captives attractive?

Cell captives are attractive to a wide range of companies because they provide similar benefits as pure captives with a more efficient cost and management structure and less minimum capital requirement. Energy Insurance Services is attractive to the energy services industry because of its expertise in the industry's insurance coverage terms and requirements, along with a close relationship with Energy Insurance Mutual. Energy Insurance Services provides a cost-efficient risk management tool with long-term flexibility for multiple exposures and various coverages.

Do most captive domiciles permit the formation and operation of cell captives?

Over half of the global captive domiciles' legislation allow the formation and operation of cell captives.

What is the future of cell captives?

I believe the future of cell captives is strong, and we will continue to see growth for years to come. As industry regulations tighten, the commercial market hardens, and claim settlements increase, a cell captive is a valuable risk financing option for small, midsize, and large companies across all industry sectors. We are very busy at EIS and ECM working with current and future members to address their immediate and anticipated future insurance needs. We don't see these issues or challenges slowing down anytime in the near future.