Captive news

Ohio is latest US captive domicile Ohio is the latest state in the US to enact captive legislation - more than 30 states now allow the formation of captives. Last month the Governor of Ohio signed into law legislation allowing Ohio businesses to form captive insurance companies in the state to provide for their own commercial insurance needs. House Bill 117 provides the Department of Insurance with regulatory authority over captives. The legislation allows the formation of captives to meet the commercial insurance needs of businesses such as for commercial auto liability, workers' compensation and medical malpractice, said the Department of Insurance, but it does not permit captives to be used to insure personal lines of insurance. HB 117 also sets out certain capital and financial reserve, organisational, general application and fee requirements and gives the Department authority to monitor the relationship/transaction between a parent business and its Ohio formed captive(s) instead of relying exclusively on another state's regulator, said the Department.hideLabuan reports captive growth The Labuan insurance sector continued to attract new international institutions to establish operations in the Labuan International Business and Financial Centre (IBFC) in 2013, according to the Labuan Financial Services Authority (LFSA). During the year, 19 new licences were granted, comprising four reinsurers, three retakaful operators, three insurers, four captives and five brokers, bringing the total number of Labuan insurance and insurance-related companies to 213. The total gross premiums written by Labuan general insurers and reinsurers surpassed the $1bn mark for six consecutive years, said the LFSA. The Labuan captive insurance business recorded a 33.8% increase in total gross premiums amounting to $437.5m, compared to $327.1m in 2012. Overall, the Labuan insurance sector has a margin of solvency of 5.2 times above the minimum regulatory requirement. The sector posted an improved industry profit before tax of $263.3m in 2013 compared to $121.5m in 2012. Marsh appoints Global Captive Solutions head Chris Lay has been appointed president of Marsh's Global Captive Solutions business. Based in London, he will report to John Drzik, president of Marsh's global risk and specialties division. He succeeds Michael Cormier, who will continue in his role as CEO of Marsh Risk Consulting. Mr Lay has served in a variety of senior roles in the UK, the Europe, Middle East, and Africa regions, and the international division. He most recently served as the business development leader within Marsh's international division. Mr Lay added: "In a rapidly evolving risk landscape, it is vital that we offer clients innovative alternative financing solutions to protect their assets and enable them to grow and thrive." Offshore domiciles in tax information exchange agreements The Government of the British Virgin Islands has revealed it has signed a Tax Information Exchange Agreement (TIEA) with the Government of Japan. The TIEA will give the two tax authorities greater ability to exchange information in accordance with internationally agreed standards. This is the 26th TIEA the British Virgin Islands has signed. The TIEA is based on a model agreement developed by the Organisation for Economic Cooperation and Development (OECD). The TIEA will allow exchange of information by request on criminal and other tax matters in accordance with the procedures agreed. The Cayman Islands and Colombia have also signed a TIEA, which will be Cayman's 36th such agreement, the third in 2014, with the Seychelles agreement being signed in February and an agreement with Belgium signed in April. Negotiations are currently underway with an additional 14 nations.

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