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Crumbling Foundations Captive Superintendent RFQ Process Now Underway

Job References-SF
August 30, 2019

Michael Maglaras, principal of Michael Maglaras & Company and superintendent of Connecticut Foundation Solutions Indemnity Company, Inc. (CFSIC), the captive insurance company now providing financial assistance to home owners affected by the crumbling foundations natural disaster, has announced that a national request for qualifications (RFQ) process to replace his firm has begun.

"My board is looking for firms with extensive captive insurance underwriting and claims management program experience to assume the important role of superintendent," Mr. Maglaras said. "Any company interested in receiving the RFQ package should request it at [email protected] Special consideration will be given to existing experienced captive consulting firms with a strong Connecticut base. A requirement of the RFQ will be for the chosen company to either have an office in Connecticut or to establish one prior to the start date."

Mr. Maglaras indicated that the superintendent's duties are broad, varied, and fall outside the usual scope of work contemplated in any captive insurance company organizational and management effort. He emphasized that the new superintendent will need significant experience with the management of a complex captive underwriting effort.

"Besides solid reference-verifiable experience in managing a captive underwriting and claims management platform, the superintendent currently deals on a daily basis with state and federal government stakeholders and members of the public—by that, I mean actual claimants," Mr. Maglaras said. "It is a highly unusual assignment and one requiring a significant amount of public outreach, including daily interactions with individual home owners whose foundations may already be under remediation or whose remediation work will not begin for a year or two, or more."

Mr. Maglaras will be managing CFSIC's effort into October and assisting collaboratively and cooperatively with the new superintendent.

"In less than 7 months, CFSIC has identified almost 1,100 claimants and has reserves of close to $120 million of crumbling foundation remediation on its books," added Mr. Maglaras. "Anyone taking the superintendent's job will need to hit the ground running and continue the work we've done, because what has been created has already resulted to date in more than $34 million in construction jobs in the northeast corner of Connecticut."

Mr. Maglaras indicated that CFSIC continues to have funding challenges and is currently in suspension until at least the end of the first week in October. He added that there also continue to be challenges by members of the public who do not yet appreciate the scope of the remediation done to date and the positive impact that CFSIC has made on the economies of towns in the affected area.

"The captive insurance industry has many fine professionals who can take my job. That's not going to be the issue," Mr. Maglaras said. "The issue will not be professional qualifications; the issue will be the willingness of the new superintendent to deal with the unique challenges of this program that fall well outside the scope of the usual captive management assignment. I'm confident that my board will select a great replacement."

More information is available on the CFSIC website.

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