Captive news

'Introduction to Captives' paper from AIG AIG has produced a short paper, "An Introduction to Captives" which explains captives, their benefits, the typical profile of their owners and more. Written by Adrian Sykes, Global Fronting Underwriter, Global Risk Solution EMEA, AIG, the report explains how sophisticated organisations are continuously looking to develop successful risk financing strategies, and that many utilise a captive to accomplish this goal. The paper answers a number of captive FAQs including 'What exactly is a captive?,', 'Why retain risk in a captive?', and 'Which risks to insure?' as well as looking at what a feasibility review entails, and what it means to be a captive owner. It also looks at the role of a fronting carrier and the need for regular reviews of the captive's suitability. The paper can be found in the International Programme News Database.hideVermont passes 1,000 captive licences in 2013 Vermont licensed 29 new captives in 2013, according to data released by the Vermont Captive Insurance Division. The new captives were made up of 16 pure captives, two industrial insured, three risk retention groups, three sponsored, and five special purpose financial insurers. The new licensees brings Vermont's overall total to 1013 with 588 active captive insurance companies. New captives were licensed in healthcare, construction, transportation, education, insurance, financing, manufacturing, banking, and securities. There were eight new captives in healthcare, four in construction, and three in transportation. "The continued formation of hospitals and doctor's groups setting up captives in Vermont has been a very positive trend that we expect to continue," said Dan Towle, Vermont's Director of Financial Services. The newly licensed captives in healthcare include Spectrum Medical Group, Usable Corporation, United Health Services, Excela Health, Catholic Medical Partners, PA & NY Hospital Members, and Cassatt RRG Holding Company. Other notable captives in 2013 include Amcol International Corporation, Burns & Scalo, Tully Construction Company, UBS Real Estate Securities, Covenant Transportation, and Freidkin Companies. New chairman for DIMA Marco Nuvoloni has been appointed Chairman of the Dublin International Insurance & Management Association (DIMA), which represents international insurers and reinsurers based in Ireland, succeeding Stephen Devine. Mr Nuvoloni has worked across financial service over the last 20 years including periods at both the FSA and the Central Bank of Ireland. His industry experience has focused on insurance and investment management from a consultancy and in house perspective. He is currently Head of Compliance Legal and Risk at Prudential International Assurance plc which he joined in 2009. Debbie O'Hare, CEO of Hannover Re Ireland Ltd, remains DIMA's Vice-Chair for 2014, and Stephen Devine, Managing Director of SCOR Global Life Reinsurance Ireland Ltd, remains on the DIMA board. Eddy Van Cutsem, formerly Vice-Chairman of DIMA, has retired from the DIMA board after almost 25 years' involvement with the association. Larry Sherin of Allied Risk Management has also retired from the DIMA board, having been a DIMA member since 1992. Bermuda registers 24 new captives in 2013 Bermuda registered 91 new insurance companies in 2013, according to annual insurer registration statistics released by the Bermuda Monetary Authority. This represents a 72% increase on the 53 firms registered in 2012. The number of new captives registered in 2013 doubled the totals recorded in 2012. In 2013 there were 24 new captives, 16 commercial insurers and a record 51 Special Purpose Insurers, compared to 12 new captives, 14 commercial insurers and 27 Special Purpose Insurers in 2012. By the end of 2013, out of the $21.0bn of global insurance-linked securities issuance, $9.2 billion was sponsored by Bermuda-based Special Purpose Insurers, representing 41% of the world-wide stock of ILS. Electronic reporting to be rolled out to Bermuda's captive insurers The Bermuda Monetary Authority (BMA) has published its 2014 Business Plan, setting out its regulatory priorities and goals for the year, including an amendment to Bermuda's insurance legislation in the second quarter of 2014 to refine the content and process of filing requirements for Bermuda's captive insurers. In particular, an enhanced Statutory Financial Return (SFR), which consolidates previous filing requirements with a new risk self-assessment, will become an annual statutory requirement for Bermuda's captive insurers. The enhanced SFR will be submitted to the Authority electronically. The BMA said that these proposed changes will create greater efficiencies in the filing process and the collection of enhanced data will assist the Authority in its continued analysis of Bermuda's captive market. '831b' captive growth forecast for Utah The Internal Revenue Code Section 831(b) election for captives has augmented the universe of US companies that can access the benefit of a captive insurance company, now expanding in the middle market, according to the US Insurance Market Report 2014 from Marsh. From 2011 to 2012, 831(b) captives experienced a 45% growth rate, a trend that is likely to continue, Marsh said. Bermuda and the Cayman Islands continue to be the preferred captive domiciles worldwide. These domiciles and Vermont account for 36% of all captives globally. But as more jurisdictions enact captive legislation, the number of captives forming onshore is increasing. Marsh said in the US, 31 states, plus the District of Columbia, Puerto Rico, and the US Virgin Islands, have captive legislation. For 2014, Marsh expects that the 831(b) captives will continue to position Utah as the number two US domicile after Vermont.

Captive news

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