Microcaptive owners warned by US Internal Revenue Service

Microcaptive owners warned by US Internal Revenue Service

Microcaptive owners warned by US Internal Revenue Service

The US Internal Revenue Service (IRS) has ramped up its examinations of abusive microcaptive insurance arrangements and has urged participants to exit these transactions as soon as possible. The IRS recently won yet another case in US tax court, arguing that such arrangements are not eligible for the tax benefits claimed. “Taxpayers who engaged in abusive microcaptive transactions are once…

In with the new: how companies are using captives to expand their risk management strategies

In with the new: how companies are using captives to expand their risk management strategies

In with the new: how companies are using captives to expand their risk management strategies

It used to be that captives were considered a risk financing solution used mostly by larger companies whose unique risks were difficult or impossible to fully cover by traditional insurance means. Fortune 500 companies and large commercial accounts were dominating the captive space. Yet, captive use has evolved, driven by the desire of companies to gain more control over their…

Captive use expanding to Asia and Latin America, says Swiss Re Institute

Captive use expanding to Asia and Latin America, says Swiss Re Institute

Captive use expanding to Asia and Latin America, says Swiss Re Institute

As rate hardening and Covid-19 disruption affect commercial insurance, companies are increasingly using captive insurance to self-insure their risks, and their use is expanding to Asia and Latin America, according to the latest Economic Insight from Swiss Re Institute. The insight, Hard market solutions: captive insurance thrives in tough times, notes that captives are also expanding to mid-sized companies, “for…

Labuan reports ‘boon year’ for captives in 2020

Labuan reports ‘boon year’ for captives in 2020

Labuan reports ‘boon year’ for captives in 2020

Last year was a “boon year” for Labuan captive business, according to the Labuan International Business and Financial Centre (Labuan IBFC), with the domicile registering eight captives in 2020, bringing the total to 55. Labuan IBFC is the only jurisdiction in Asia that provides for the formation of protected cell companies and the centre said “this has been the largest…

VCIA’s president criticises Washington’s captive law

VCIA’s president criticises Washington’s captive law

VCIA’s president criticises Washington’s captive law

Washington state’s new captive bill is poorly drafted and sets a terrible precedent on regulation in other domiciles, according to the Vermont Captive Insurance Association (VCIA). In a recent blog, Rich Smith, VCIA president, says the captive insurance industry is facing a new slippery slope following the approval of legislation by the Washington State Senate that would set new requirements…

Guernsey ready for captive demand spike as hard market bites

Guernsey ready for captive demand spike as hard market bites

Guernsey ready for captive demand spike as hard market bites

The rapidly rising interest in captives among the UK risk and insurance management community as its members battle with the challenges posed by the ongoing harsh commercial insurance market was underlined by Tom Richardson, group insurance director at Associated British Foods, during a webinar with captive market experts organised by Guernsey Finance late last week. The limited appetite of the…

Anra in discussion with insurance supervisor on captive formation in Italy

Anra in discussion with insurance supervisor on captive formation in Italy

Anra in discussion with insurance supervisor on captive formation in Italy

Italian risk management association Anra is in an “informal” and “cordial” dialogue with the national insurance supervisor IVASS to ensure it is as easy as possible for Italian companies to form and use captives, as they struggle to deal with the dramatically hardening insurance market. This move comes as French risk management association AMRAE is awaiting proposals from its Finance Ministry…

Vermont licenses 1,200th captive

Vermont licenses 1,200th captive

Vermont licenses 1,200th captive

Vermont continues to grow as a captive domicile and has licensed its 1,200th captive insurance company. Assurance Company was granted a licence as a pure captive insurance company on 1 January. It was formed by the Lancaster County Solid Waste Management Authority (LCSWMA). “As Vermont reaches another significant milestone for our captive insurance industry, we look forward to continuing to…

Guernsey expects significant rise in new captives from fast-track pilot

Guernsey expects significant rise in new captives from fast-track pilot

Guernsey expects significant rise in new captives from fast-track pilot

Last year, Guernsey licensed seven new captives, but the domicile expects to see a significant rise in 2021, according to Guernsey Finance, the joint industry and government initiative to promote Guernsey’s financial services sector. Guernsey added three captives, four captive cells, and two special purpose vehicles in 2020. This year has already seen a new captive company, protected cell company…

Isle of Man ramps up captive offering with digital marketing campaign

Isle of Man ramps up captive offering with digital marketing campaign

Isle of Man ramps up captive offering with digital marketing campaign

In a sure sign that the captive insurance sector is seeing considerable interest as the hard market bites, the Isle of Man has launched a digital marketing campaign to promote its captive insurance offering. The Isle of Man is home to well over 100 captive insurance companies, but the domicile has seen limited growth in captive formations in recent years.…

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