Captive news

New insurance SPV legislation introduced by Isle of Man The Isle of Man government has launched insurance Special Purpose Vehicle (ISPV) legislation. The rules are designed specifically to facilitate Insurance Linked Securities (ILS) and similar transactions including catastrophe bonds, mortality bonds, sidecars and industry loss warranties, as well as other collateralised reinsurance structures. John Garland, Head of Corporate Financial Services at the Isle of Man government's Department of Economic Development said: "We can offer speed to market with the licensing process designed to take just five days following receipt of fully prepared applications. We can also offer a highly competitive fee structure - that may be fixed for the lifetime of any ISPV with a determinable lifespan - along with simplified regulatory requirements, including returns."hideNevada reports record-breaking captive year The Nevada captive insurance industry says it had another record breaking year in 2014 with captive premiums increasing by $3.8bn. Nevada now has 160 domestic captive insurers and has licensed more than 200 captive insurers since the inception of its captive insurance programme in 1999. Insurance Commissioner Scott J. Kipper said: "As one of our nation's oldest and largest captive domiciles, Nevada prides itself on its ability to maintain consistent and high regulatory standards, while also providing good service and a business friendly regulatory environment." Texas promotes bill to expand captive legislation The Texas Captive Insurance Association (TxCIA) is supporting a bill to expand the provisions of the legislation that was passed in 2013 authorising captive insurance in the state for the first time. According to the TxCIA, the bill will have three key provisions. First, it will add reinsurance pooling as an option for risk sharing to allow captives to introduce third party risk to insure deductibility of premium. Secondly, it will provide discretion to the insurance regulator, the Texas Department of Insurance (TDI), in determining when credit for reinsurance will be granted. Finally, the bill will require notice be given to TDI when a captive declares stockholder dividends. The TxCIA said that currently the law allows for policyholder dividends and while in many cases the policyholders and shareholders are the same entity, amending the law to recognise shareholder dividends recognises the ownership rights and expectations of shareholder's return on investment. Delaware licenses 87 captives in 2014 The Insurance Commissioner's captive bureau in Delaware licensed 87 captive insurers and 141 series business units in 2014. Since inception, the captive programme has licensed 385 captive insurers, 753 series business units, and 13 cells. Currently, there are 333 active captive insurers, 688 active series business units, and 12 active cells. According to the Delaware Captive Insurance Association (DCIA), series captives are owned by a parent company with individual captives or cells. "Unlike a segregated cell captive where the individual cells are treated as accounts, a series captive allows those individual members of the series to be treated like a captive. These Series Business Units (SBUs) differ from a segregated cell captive in that SBUs exist pursuant to alternative entity laws and not pursuant to the captive insurance statutes that define protected cells. Series captives are not subject to the minimum premium tax requirement or a standard minimum capitalisation and can be designed for simpler administration than a protected cell captive," the DCIA explained. Aon launches White Rock USA Aon Risk Solutions has announced the launch of White Rock USA, a subsidiary of Aon owned White Rock Group. The subsidiary will be based in Vermont. White Rock Group has operations in a number of domiciles, including Bermuda, Gibraltar, Guernsey, Isle of Man and Malta. White Rock was the first group to form a Protected Cell Company, and the first to form an Incorporated Cell Company.

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Want to read this article?

Read Next

Costs rapidly rising for employee health insurance in Portugal

UK market must innovate, not exclude emerging risks: BIBA

EC probes Meta for alleged breaches of Digital Services Act

AM Best improves outlook for Spanish market as talks underway to boost nat cat scheme

Survey suggests risk management losing gains made since pandemic

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