captive insurance
vermont has continued to take a leadership role in all areas of captive insurance including at the naic and in the captive insurance community .
new zealand' s insurance legislation is called the
insurance companies deposit act .
it does not distinguish between a captive and a normal new zealand insurance company. the environment is favourable for captive insurance companies .
property & casualty insurance industry tech and partnership news from johnson & johnson insurance, tower insurance, caa and more .
arizona department of insurance captive pages or arizona captive insurance association (azcia) to read about captives in arizona, its legislation and download forms .
source: business insurance survey, business insurance (urltoken), march 2018 .
atlas insurance management has received approval from the texas department of insurance to act as a captive manager in the state .
dig deep into important issues and trends in captive insurance. download this free special report featuring practical knowledge and insights from eight respected captive insurance thought leaders !
tax law generally allows businesses to create “captive” insurance companies to protect against certain risks. traditional captive insurance typically allows a taxpayer to reduce insurance costs. the insured business claims deductions for premiums paid for insurance policies. those amounts are paid, either as insurance premiums or reinsurance premiums, to a “captive” insurance company owned by the insured or parties related to the insured .
february 7, 2017 - - causey salutes rep. johnson on captive insurance program
aon captive and insurance management (acim) provide application, set - up and on - going outsourced management services to insurance, reinsurance and captive entities in ireland .
the captive wire™ publishes important captive insurance, reinsurance, regulatory, financial, and economic news from around the globe daily .
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the 2015 rankings of the world' s largest captive insurance domiciles is excerpted from the march 15, 2015 issue of business insurance .
second - substantial changes have occurred in the tax landscape dealing with captive insurance companies. the service has issued a number of revenue rulings setting out what it believes are the requisite fact patterns for a valid captive insurance arrangement, and more recently the tax court has examined captive insurance arrangements and further clarified the requirements for a valid captive insurance arrangement .
aon' s captive & insurance management team manages approximately 1, 100 insurance entities worldwide including captives, protected and incorporated cell facilities, special purpose vehicles and specialist insurance and reinsurance companies .
other insurance risks that get listed for policies written by captive insurance companies include disability, employment practice liability, business interruption and online attacks .
one of the primary goals of a captive insurance company is to provide improved risk management for an organization. some of the risk management benefits that a captive insurance company can achieve :
alternative risk consulting, independent director services, and captive insurance management for self - insured organizations and group captive structures. specialized in working with captive program managers and insurance consultants to design and manage efficient turn - key operations .
“issues paper on the regulation and supervision of captive insurance companies, ” iais, october 2006 .
follow this link to montana captive insurance legislation, forms, regs, history of captive legislation - - all on a well - designed page .
a captive insurance company (cic) is an insurance company established by an operating parent company for the purpose of covering the parent company’s specific risks. cics are effectively a type of “self - insurance. ”
david slenn said some policies distort the original purpose of captive insurance companies and sidestep gift tax laws .
insurance companies and reinsurers will need to approve a domicile as well as the individual captive being used .
captive insurance is a regulated form of self - insurance that has existed since the 1960s, and has been a part of the vermont insurance industry since 1981, when vermont passed the special insurer act. captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk. captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability. growth sectors of the captive insurance industry include professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid - sized companies forming captive insurance companies .
a
captive insurance company
( captive) is an insurance company that issues coverage for specific risks to a business for which coverage from commercial insurance carriers may be unavailable or unaffordable. instead of paying premiums to a commercial insurance carrier, premiums are paid to a captive. any money that is not utilized or paid in claims stays in reserves, is investable, and may become profit in the captive .
in fact, montana’s core captive regulators are the same individuals who have been on the job since the state’s birth as a captive domicile in 2001. the only major change occurred when steve matthews took over the captive regulation helm from john huth in 2008 after the montana captive insurance association appointed him captive insurance coordinator of the montana state auditor’s office .
captive review magazine is a monthly publication read by more than 12, 000 subscribers, 60 percent of whom are captive owners. the magazine and web site are also widely used by captive management firms and the wider captive insurance service provider sector .
may 11, 2009: from the arizona department of insurance, you can now download the arizona captive insurance division reference guide in pdf. this document is only a guide intended to assist you in the formation and ongoing operation of a captive insurance company in arizona .
non - life insurance and reinsurance companies in ireland are subject to authorisation as an insurance or reinsurance undertaking under the european communities (non - life insurance) framework regulations, 1994. the central bank of ireland is responsible for the authorisation, regulation and supervision of all insurance undertakings authorised in ireland (this includes captive insurance, captive reinsurance and special purpose reinsurance vehicles (‘sprvs’) .
captive insurance professionals launched a staunch defence of 831 (b) insurers at the captive insurance companies association (cica) international conference in light of the us internal revenue service’s (irs) renewed interest in them .
on june 17 ohio gov. john kasich signed legislation (hb 117) allowing for the creation of captive insurance companies. ohio now joins 30 other states that permit captive companies, which are popular risk management tools for large corporations. a captive insurance company generally is an insurance company owned by a parent or operating company that underwrites insurance for the parent and its operating subsidiaries .
atlas insurance management provides you with a sound basis of expertise in the major u. s. and offshore captive insurance domiciles. each of these domiciles possesses unique characteristics, which should be considered in establishing your captive .
read our guide and find out why selecting a captive insurance domicile is a key decision that will have an impact on how a captive program is put together .
taft is a captive management firm that excels at creativity in captive structural design and art market knowledge .
generally, the more established a captive domicile is, the quicker the captive formation process will be .
different types of captive require different expertise, as regulations can vary according to the type of captive .
as the 19th century came to a close, the first liability policies were issued: employer liability was followed by auto liability insurance. the introduction of liability insurance led to further expansion of the insurance business and to greater specialization among distributors, with general agents mostly selling liability insurance and independent agents fire insurance .
atlas insurance management is a leader in the formation and management of captive insurance companies for diverse clientele in major u. s. and offshore domiciles. atlas creates custom captive insurance models for the efficient financing of risk and matches innovative techniques to the client’s strategic business objectives and appetite for risk .
a captive insurance company is a form of corporate
self - insurance .
while there are financial benefits of creating a separate entity to provide insurance services, parent companies must consider the associated administrative and overhead costs, such as additional personnel. there are also complex compliance issues to consider. as a result, larger corporations predominantly form captive insurance companies .
the majority of captives are owned and used by non - insurance companies. the term “captive” originally referred to subsidiaries set up by non - insurance companies to insure the company’s own risk. however, the use and definition of “captive” has broadened over time, as insurance companies are now creating captives. notably, some life insurers have entered the market, utilizing captives to form captive reinsurance subsidiaries and insurance securitizations. this development has led to questions regarding whether third - party insurance risk should be a risk undertaken by a captive insurer .
the captive insurance company solution has long been utilized by some of the largest companies in the united states. congress has enacted tax incentives to encourage the formation of captives for the small and medium sized business market. at its core, a captive insurance company is a wholly owned company that insures the risks of companies affiliated with the shareholders of the captive. the captive insurance company may also offer other planning benefits .
middle - market companies looking for alternatives to traditional insurance offerings should consider the option of captive insurance, especially for the ability to control costs, achieve tax benefits and manage its risk .
no. captive insurance strategies have been around for over 50 years. allstate insurance was a captive insurance company of sears before allstate was sold in 1995. for many years, large corporations, such as exxonmobile, adm, verizon and at & t; , have utilized captives as alternative risk transfer strategies to reduce insurance costs, improve risk management, and save taxes .
downloadable pdf files, posted october 2006. please check with your local captive consultants for any subsequent changes to the captive law or regulations before proceeding with your captive :
as an authorized service provider in the state of delaware, we believe regulatory compliance is paramount to a captive insurance strategy .
a well - known captive insurance company made headlines in the wake of the 2010 british petroleum plc oil spill in the gulf of mexico. at that time, reports circulated that bp was self - insured by a guernsey - based captive insurance company called jupiter insurance and that it could receive as much as $ 700 million from it. british petroleum is not alone in this practice, as many fortune 500 companies have captive insurance subsidiaries .
a captive is a smart risk management insurance structure that, when executed in compliance with state insurance regulations and irs guidelines, may provide more cost effective business risk coverage while simultaneously building equity .
many companies seek to rationalize their captive arrangements and release capital or simply seek to exit third party lines of business to enable their captive insurance affiliates to focus on core group insurances .
the captive insurance company or the captive cell must qualify as an insurance company for tax purposes. very briefly, this means it must have adequate risk shifting and sharing and operate and be regulated like a
real
insurance company (e. g. , with adequate capital to allow it to take risk) .
rent - a - captive – a captive owned by an outside organization and open to participants for a fee. members “rent” licenses and capital from the rent - a - captive owner. a rent - a - captive, or rental captive, is often used by entities that prefer not to form their own dedicated captive or for a program that is too small to justify incorporating its own captive .
captive planning associates is a boutique captive management firm specializing in alternative risk solutions to closely - held family - owned businesses and large corporations. the firm is known for its holistic approach to design, formation and implementation of captive insurance companies. cpa manages a variety of captive structures in various industries .
icg captive services, llc provides consulting, formation and management services for captive insurance companies. with years of experience in the insurance, legal and accounting industries, we use a multi - disciplined approach to design and implement captive strategies. our captive services team is committed to building customized programs that integrate with our clients' goals, manage risk and yield financial benefits .
during the 1700s and 1800s, there were instances of mutual insurance companies being formed by members of a particular industry to provide insurance coverage .
january 2012: rules, databased searchable, downloadable captive laws, forms, contacts, and a wealth of information are now available on the tennessee insurance division - captive insurance pages here. this is a great website that is clear and easy to navigate .
23 march 2010: guernsey retains world leader status for captive insurance .
two new studies have reaffirmed guernsey’s position as the leading captive insurance centre in europe and among the top four in the world... .
[ to full story ]
while the internal revenue service has accepted the use and role of captive insurance arrangements as an integral part of a comprehensive risk management strategy, they continue to challenge captive insurance arrangements which fail to comply with the principles and guidelines established by the courts in defining
insurance
for us federal income tax purposes. in response, pwc has developed a comprehensive captive health check to assist companies in assessing how their captive insurance arrangements stand up against these principles and guidelines and to serve as a platform for identifying best practices and possible enhancements to improve the captive' s financial benefits .
the tax concept of a captive insurance company is relatively simple. the parent company pays insurance premiums to its captive insurance company and seeks to deduct these premiums in its home country, often a high - tax jurisdiction. a parent company will locate the captive insurance company in tax havens, such as bermuda and the cayman islands to avoid adverse tax implications. today, several states in the us allow the formation of captive companies. the protection from tax assessment is a sought - after benefit for the parent company .
the tax status of the captive insurance company for u. s. federal income tax purposes is an important consideration. if the captive qualifies as an insurance company for u. s. federal income tax purposes, then premium paid to the captive is tax deductible by the insured entity, and the captive is allowed favorable tax treatment under subchapter l of the internal revenue code .
the state of vermont has been awarded the top us domicile for “excellence in captive insurance services. ” the award was presented by captive review magazine during the inaugural u. s. captive services awards on sept. 10, in chicago. the awards ceremony was attended by more than 200 captive management professionals .
most major corporations have captive insurance companies. for example, exxon mobil corp. has ancon insurance co. inc. ; verizon communications inc. has exchange indemnity co. ; johnson & johnson has middlesex mutual assurance co. ; and the boeing co. has astro ltd. properly structured captive insurance companies are legitimate companies that underwrite risks that are being covered by a third - party insurer or that the companies would otherwise insure themselves. companies with hard - to - place insurance needs are prime candidates to create a captive insurance company .
at oxford risk management group, we specialize in conducting captive feasibility analysis and coordinating turn - key design, implementation, regulatory approval and management of captive insurance companies. we bring together the right partners with expertise where it matters most, to deliver the highest possible degree of long - term success for your captive insurance company .
like any other insurance company, self insurance is subject to regulation. a captive will be subject to the same corporate governance matters as other subsidiaries in the consolidated group, including establishing a sound business plan .
at its most basic level a “pure” captive works like this: a corporation with one or more subsidiaries sets up a captive insurance company as a wholly owned subsidiary. the captive is capitalized and domiciled in a jurisdiction with captive - enabling legislation which allows the captive to operate as a licensed insurer. the parent identifies the risks of its subsidiaries that it wants the captive to underwrite. the captive evaluates the risks, writes policies, sets premium levels and accepts premium payments. the subsidiaries then pay the captive tax - deductible premium payments and the captive, like any insurer, invests the premium payments for future claim payouts .
10 january 2017. if you would like to more effectively manage your company’s risks, looking into captive insurance options may be particularly beneficial, including forming a micro captive insurance company to cover a portion of your company’s risks. smaller insurance companies with annual premiums under $ 2. 2 million in 2017 (adjusted for inflation), may qualify as a micro captive and only be taxed on net investment income at the captive level. however, there are other tax qualifications that must be met in order to form a micro captive .
insurance companies with less than $ 1. 2 million in annual premiums pay $ 0 income tax on insurance profits (only investment income is taxed )
according to business insurance, there are 29 captive domiciles in the u. s. , including 28 states and the district of columbia .
if the parent company realizes a tax break from the creation of a captive insurance company will depend on the classification of insurance, the company transacts. in the united states, the internal revenue service (irs) requires risk distribution and risk shifting to be present for a transaction to fall into the category of
insurance .
the irs publicly declared that it would take action against captive insurance companies suspected of abusive tax evasion .
some corporations may have multiple captives that insure different risks. for example, one captive may cover a corporation' s product liability, while another provides insurance for the corporation' s employee benefit liabilities. captives also are not limited to publicly traded corporations. midsize and privately held corporations, tax - exempt corporations, and even nonprofits may choose to form a captive insurance company to insure some of their risks. for example, veritas insurance corp. is the university of michigan’s captive insurance company .
mcneel said beginning in 2009, the company significantly expanded its “domestic captive formations after becoming a licensed captive manager in delaware. ”
different captive managers will have different fee structures depending on the volume of business going through the captive and the services being performed .
cole, cassandra and mccullough, kathleen a. , “captive domiciles: trends and recent changes, ” journal of insurance regulation, summer 2008 .
aon manage over 1, 250 insurance vehicles globally in 33 domiciles, receiving the ‘best captive manager award’ by business insurance magazine readers in 2009 and 2010. our broad client base includes the captive entities of parent companies throughout a full range of industries across all lines of business and programs .
june 27, 2018 - - commissioner causey announces that captive insurance program provided a $ 30 million boost to n. c. economy in 2017
insurance business can require a large volume of transactions. a captive manager must have adequate resources to execute them in a timely and efficient fashion .
capstone’s clients use alternative risk financing strategies to reduce insurance costs, improve risk management, customize coverages and increase cash flow. capstone provides captive insurance services to middle market companies, offering turnkey services with its related law firm .
depending on to what extent the captive manager is to get involved with the underwriting and claims aspects of the captive program a knowledge of the class of business being written by the captive is important .
the notice defines the computation period as the captive insurance company' s five most recent tax years, or if it has been in existence for less than five tax years, the entire period of its existence. if the captive insurance company has existed for less than five tax years but is a successor to one or more captive insurance companies
created or availed of in connection with a transaction described in the notice ,
these entities' tax years are treated as tax years of the captive insurance company. for these purposes, a short tax year is treated as a tax
a captive insurance company is a wholly owned subsidiary company that provides risk - mitigation services for its parent company or a group of related companies. a captive insurance company may form if the parent company cannot find an outside firm to insure them against particular business risks; if the premiums paid to the captive insurer creates tax savings; or if the insurance provided is more affordable or offers better coverage for the parent company' s risks .
janet aschkenasy is a freelance writer who specializes in insurance and employee benefits issues .
the key purpose of insurance regulation is to protect policyholders first and foremost, as well as investors and other stakeholders. a captive is different from a commercial insurance company, because it just serves its parent company. therefore, captives are regulated differently than traditional insurance companies that serve the public. like traditional insurance companies, captives are regulated by the state in which its headquarters are located .
different domiciles have different laws regarding the amount of capital that is required to start a captive. one of the main advantages of the captive approach is that the capitalisation and surplus requirements of starting up a captive can be lower than they would be for forming an onshore insurance company .
the insurance company has at least been insuring against the risk of fire. and likewise, a small captive is supposed to insure a legitimate risk .
in its 2006 regular session, the alabama legislature passed a bill allowing for captive insurance companies. gov. bob riley signed the bill into law .
new distribution channels: in the early days of insurance, insurance policies were sold at banks. but the 1916 national bank act limited banks’ sale of insurance, except in small towns. in the 1990s various court decisions allowed banks to get back into the business of selling insurance, culminating in the 1999 gramm - leach - bliley act, which said that banks, insurance companies and securities firms could affiliate and sell each others' products. since that time banks have bought hundreds of insurance agencies and brokerages, and bank sales of all kinds of insurance have grown significantly .
the term “captive” or “exclusive” agent has become associated with companies known today as direct writers. one major difference between captive and independent agents is that the independent agent rather than the insurer legally owns access to policy renewals. captive insurance agents may be employees of the company or independent contractors .
association captive – a captive owned by a trade, industry or service group (e. g. , doctors) writing only the risk of its owners and / or affiliates. an association captive is similar to a group captive except that it is sponsored or owned by a group of entities within a particular organization with common insurance needs and similar exposures .
captives were first organized in the 1950s, when youngstown sheet & tube company formed its own insurance subsidiaries, with the intention of providing insurance exclusively for their corporate - owned mines. soon they were referred to as captive insurance companies, because of the direct connection and exclusivity between the company and what it insures. the term today is used to describe instances where the policyholder owns the insurance company; i. e. , the insurer is captive to the policyholder .
this link leads to the missouri captive insurance program page. here, you will find a terrific menu leading to everything you will need to explore captive formation in missouri. our congratulations to missouri on a job well done !
with the affordable care act slowly becoming the norm, mid - sized companies are looking for health care options — and one such option is captive insurance .
july 27, 2007: the 2006 captive act amendments: revolutionizing protected cell laws in the district by stephen f. donahoe, muldoon murphy & aguggia llp. on march 14, 2007, the district of columbia amended its captive insurance laws by enacting the captive insurance company amendment act of 2006 (the “2006 amendments”). the 2006 amendments update segregated cell provisions included in the district’s captive insurance company acts of 2000 and 2004 and offer clear advantages over other domestic domiciles with respect to protected cell flexibility. [ more... ]
also see: urltoken for the insurance act and regs as supplied by the ccia .
april 2008, white paper on captive insurance companies prepared for the reserve bank of new zealand, prepared by the nzcia. this is a good captive basics white paper, and contains helpful information on new zealand as a domicile .
group captive –a captive established by a group of companies with similar businesses or exposures writing only the risks of its owners and / or affiliates .
traditional insurers do not meet every risk - management need for every business. the captive insurance industry initially developed to formalize a large business enterprise’s self - insurance program. however, the captive insurance marketplace today is much more diverse than when it began. as risks evolve, responses to managing them change. it is incumbent upon insurance regulators to keep pace with this ever - changing, dynamic marketplace. the most recent test is the evolving nature of the risks transferred to captive insurers in the form of third - party insurance risk. we plan to report on the activities of the captives and spv use (e) subgroup as it considers the merits and issues associated with the use of captives to cover third - party insurance risk .
tennessee’s governor, commissioner, general assembly and business community have all worked together to create ‘explosive growth’ in the state’s captive insurance industry. julie mix mcpeak explains more
under section 831 (b) of the tax code, captive insurers that qualify as small insurance companies can elect to exclude limited amounts of annual net premiums from income, so that the captive pays tax only on its investment income .
a captive is an insurance company that insures the risks of its parent, shareholders, or affiliated companies. your captive issues insurance policies, collects premiums, and pays claims. all captives should be used to manage risk. in addition to that, captives may be used in many different ways and for many different reasons .
the section 831 (b) captive or “small” property and casualty captive is one of the most popular choices for the sector, according to capstone .
keystate captive management runs the largest bank captive program in the country. the program is designed by national accounting firm crowe horwath llp and then administered by keystate captive management. banks that fit a certain asset size and earnings criteria can form their own wholly owned captive insurance company to finance risks (that are not commercially insured) in a tax advantaged way. keystate' s bank captive program has been endorsed by 24 state banking associations or their for profit subsidiaries .
the captive insurance company must be capitalized. in order for the captive to have an impact on the corporate group, it requires a material amount of capital and premium funding. as a result, there may be an opportunity cost associated with lower yield captive investments vs. higher parent “hurdle” rate (roi) .
houston - based capstone associated services ltd. announced it has formed its 100th captive insurance company. capstone formed its first captive in 1998 and has since formed captives for a wide variety of middle market businesses with headquarters throughout the united states .
september 22, 2010: from the recent sccia conference, download a luncheon slide presentation delivered by marsh management service' s robert l. johnson on behalf of the south carolina captive insurance association - - south carolina captive economic impact report .
somers risk consulting specializes in the design, structuring and implementation of captive insurance companies. we combine strong consulting support with quality captive management services. our experienced consultants stay heavily involved at all stages providing a high level of personalized customer service .
some 30 states have passed legislation pertaining to captive groups, with vermont leading the formation of groups, the new york times and national association of insurance commissioners reported .
the legislation for captive insurers in the state of michigan was enacted by public act 29 of 2008 adding chapters 46, 47 and 48 to the michigan insurance code .
in its simplest form, a captive is a wholly owned subsidiary created to provide insurance to its non - insurance parent company (or companies). captives are established to meet the risk - management needs of the owners or members. they are essentially a form of self - insurance whereby the insurer is owned wholly by the insured. once established, the captive operates like any commercial insurer—i. e. , it issues policies, collects premiums and pays claims, but it does not offer insurance to the public—and it is regulated as a captive, rather than as a traditional insurer .
the strongest periods of growth for captives occur as builders respond to hard market insurance environments .
source: limra’s u. s. individual life insurance sales survey results and limra estimates .
soon, other mutual insurance companies were formed, followed by stock companies. the insurance company of north america (ina), the first u. s. stock insurance company, was founded in 1792. at first it sold only marine insurance but soon offered fire insurance as well and was the first company to insure both buildings and their contents. a few years later, in 1795, the first u. s. insurance agency opened in charleston, south carolina. known as davis & reid, and later as the vigilant insurance office, it advertised that it offered a choice of “underwriters, ” entities that assumed the risk .
the international association of insurance commissioners (iais) defines a captive as “an insurance or reinsurance entity created and owned, directly or indirectly, by one or more industrial, commercial or financial entities, other than an insurance or reinsurance group entity, the purpose of which is to provide insurance or reinsurance cover for risks of the entity or entities to which it belongs, or for entities connected to those entities, and only a small part if any of its risk exposure is related to providing insurance or reinsurance to other parties. ”
the type of entity forming a captive varies from a major multinational corporation to a nonprofit organization. captives are held by the vast majority of fortune 500 companies as an alternative method of risk financing (e. g. , gold medal insurance co. was established by general mills as a captive and allstate was originally set up as a captive by sears & roebuck co .). the industries with the greatest number of captives are finance, real estate, construction and manufacturing. over the past several years, there has been particular growth in areas such as health care, property development and securitization for life insurers. a corporation that forms a captive will normally organize the captive as a subsidiary. because few companies are in the business of insurance themselves, most captive parents will hire an outside firm, often an insurance company or captive manager, to manage the captive for them .
a captive is an insurance company set up by its owners primarily to insure its own specific risks. where the conventional insurance marketplace has not responded to the needs of businesses requiring innovative solutions for large or complex risks, organisations that venture into this area have much to gain. captive owners benefit from reduced insurance costs, access to reinsurers, an ability to insure the ‘uninsurable’ and improved cover and control. in addition, the captive approach may offer tax advantages. many international companies have found that a captive is the best means of creating and administering a global risk management programme .
the term “captive” was coined in the 1950s by frederic m. reiss, a property engineer turned insurance broker in youngtown, ohio. reiss, known as the father of captive insurance, used the term “captive” to describe an insurance company he helped form to provide insurance coverage solely to the parent. in 1958, reiss incorporated american risk management and began to assist corporations in setting up captives. during this time, u. s. regulations made it prohibitively expensive to form and operate captives in the united states, leading reiss to seek out other jurisdictions to allow his captive idea to flourish. in 1960, bermuda became an offshore financial center and, in 1962, reiss set up the first modern - day captive there called international risk management ltd .
there were 5, 745 captives worldwide at the end of 2011, up from 5, 587 in 2010, according to an annual business insurance survey of captive domiciles .
march 2013 featured article: another us domicile on the way? maybe. here' s a bit of info about maryland' s proposed captive insurance study: urltoken .
the legislation was the recommendation of the hurricane insurance issues task force, which put its stamp of approval on the bill in order to provide underserved commercial markets a new option for insurance .
“though vermont easily maintains its lead, once montana catches up in longevity as a captive domicile, it may well surpass it, ” said dick goff, president of the montana captive insurance association and captive manager with the taft companies, where he has an office in helena, montana. “discounting 831 (b) [ micro ] captives, montana is the largest captive domicile west of the mississippi. ”
the anguilla insurance website is well - designed and easy to navigate. download revised statutes of anguilla
urltoken you can link from the financial services commission site urltoken under insurance. official regs online .
general manager, island insurance management services limited. e - mail your questions to stanley at :
praise for regulators many captive managers appreciate the consistency and quality of the state’s captive regulators, according to goff. for instance, he said that montana insurance commissioner monica lindeen has “very selectively” chosen new personnel to regulate captives while maintaining a clear separation between the insurance department and the alternative risk department. “i applaud her for it, ” said goff .
to vanuatu captive insurance website all legislation, regs, apps, etc. are available in english and french. a well - organized, easy - to - navagate website !
september 11, 2007: download this informational powerpoint presentation from a session presented at the recent nzcia conference entitled ,
new zealand captive insurance legislation - - the future .
peter mullen, ceo of aon global risk consulting’s captive and insurance management team in bermuda, said one of the challenges aon discovered that clients had was actually understanding the risk .
cic services, llc is a risk management consulting firm, specializing in the utilization of captive insurance companies to help organizations achieve their overall enterprise risk management goals. we have been providing superior expertise, and full - service, turn - key captive management solutions since 2005, and our principals have over a century of combined experience in the insurance industry .
as she explained it, the captive could be set up and owned by children and grandchildren. except for the money paid to establish the captive as an insurance company, the rest of the money put into the shelter would be free of gift tax .
a micro captive can write custom insurance policies that fit the specific needs of the insured entity. if you believe your company would benefit from establishing such a captive and would like more information on micro captives, captive resources has the services you need; please contact ernie achtien at eachtien @ urltoken or amy lewis at alewis @ urltoken .
different captive domiciles have different capitalization, reporting, auditing and loss reserving requirements .
it is important to ensure that the captive manager can provide all the services expected by the captive user and which are not being outsourced to other service providers .
of course, the risks the micro - captive will write are of key importance to the success of the captive and have a profound impact on the tax treatment of premiums paid to the captive. the parent company should have a genuine need for a risk finance solution for the covered risks and, to have an opportunity to secure favorable tax treatment, it should be covering
insurance risk .
( see
when are premiums paid to a captive insurance company deductible for federal income tax purposes ?
) .
“just as there would be a condo developer, ” olson said, “here there is a sponsor of the core cell captive. ” that sponsor forms the cell captive with initial funding before selling off different units—the “cells”—that are used for various types of insurance business .
the study later becomes, in essence, the business plan for the captive with actuarial support for the loss assumptions, a description of how reinsurance will function behind the captive and how much capital will be required to make the captive financially viable .
advantage is a leading international provider of specialty insurance and related services to business owners and high net worth individuals seeking customized insurance solutions for their risk management and financial planning needs. advantage' s business insurance group specializes in the creation of customized risk finance, risk protection and risk transfer solutions for small and medium - sized businesses using captive insurers and other alternative risk transfer methods .
captive insurance in hong kong - this is the link to general info and links, but you would need to dig to find the legislation; hence, we provide it above .
selecting a domicile is a key decision and one that is made at an early stage, since regulatory factors will have an impact on how a captive insurance program is put together .
river oak risk is an independent captive management company offering innovative and flexible options to deliver a full range of alternative risk transfer strategies to middle market closely held businesses. ror is different from most captive management companies because our primary focus is on risk management. we work with clients to establish a comprehensive risk management program for their businesses incorporating their existing insurance programs with captive insurance to maximize the business owner' s financial well - being long term .
. this link takes you to the main page for kentucky captive insurance. the links to all captive - specific information are clear, and the website is extremely well - done. we suspect this has something to do with the enormous initial success of the domicile !
2018 north carolina captive insurance association on august 20 – 22, 2018 at the le meridien / sheraton hotelschief deputy commissioner dr. michelle osborne, sr. deputy commissioner debbie walker, and ncdoi’s captive insurance team will be presenting the opening plenary session on august 21 and exhibiting at the conference. commissioner mike causey will be presenting the commissioner’s luncheon speech on august 21 .
to become more attractive for and encourage the creation of captives within their borders, some u. s. states have adopted or revised their captive insurance laws. attracting captive insurance companies can promote business travel to a state, create jobs, and increase tax revenue via premium taxes on the captives. for example, vermont has been particularly aggressive in courting captive insurance companies; it was one of the first states to make it attractive for captives to locate onshore. it did so by creating a favorable regulatory environment for the creation and operation of captives .
despite the stormy waters swamping the current insurance landscape, industry leaders say there are paths to success .
wholesale brokers may also be managing general agents, who are given authority by insurers to underwrite and “bind” insurance—provide temporary coverage until an insurance policy can be issued. managing general agents, who have a close relationship with the insurance companies they work with, may also handle claims and even help in the placement of reinsurance contracts—reinsurance is insurance for insurance companies. managing general agents may also arrange so - called “program” business, which is specialty insurance for homogeneous groups of policyholders, such as members of a specific industry. these programs, often offered and endorsed by trade associations, may provide coverage at lower prices .
a taxpayer attempts to reduce the aggregate taxable income of the taxpayer, related persons, or both, using contracts that the parties treat as insurance contracts and a related company that the parties treat as a captive insurance company. each entity that the parties treat as an insured entity under the contracts claims deductions for premiums for insurance coverage. the related company that the parties treat as a captive insurance company elects pursuant to [ sec. ] 831 (b) to be taxed only on investment income and therefore excludes the payments directly or indirectly received under the contracts from its taxable
a captive is a formalized form of self - insurance. over half of all premiums collected in the us are now in alternative vehicles (like captives) rather than the traditional market .
jeffrey simpson, director at law firm gordon, fournaris & mammarella, suggested that the captive insurance industry needs one or two examples for guidance and to provide standards before it can readjust .
there continues to be a buzz about section 831 (b) micro captives as having multiple benefits for companies that make the election and own a captive insurance company that meets irs requirements .
pwc has a proven track record of delivering high - quality captive insurance solutions throughout the captive lifecycle. what differentiates us is a multi - disciplinary team that can provide access to risk management, actuarial, tax (us federal, state and international), regulatory and accounting professionals. we can assist you with all aspects of the captive establishment process including :
founded in 2006, arsenal is nationally recognized as a leader in the captive industry. in 2016, arsenal was named independent captive manager of the year in the us captive service awards organized by captive review magazine, in addition to nominations in 2014 and 2015. arsenal delivers broad customer solutions in risk management for captives, mutuals, rrgs, and other insurance entities through office locations in alabama, georgia, florida, tennessee, and texas .
chad kunkel, senior vice president and group captive strategy leader at artex risk solutions inc. , the captive management arm of arthur j. gallagher & co. , told business insurance he has seen a 100% increase in new businesses joining existing captives in the last year .
a: a feasibility study is important because it answers the essential question; “what will my return on investment be by using a captive? ” prospective shareholders of the captive should have a clear understanding of what to expect when their capital is used to establish an insurance company .
when the economy weakened again in 2008, companies slowed the formation of captive groups, but insurance companies are seeing increased demand for them as the economic downturn flattens, property casualty 360 reported .
on november 1, 2016, the irs released notice 2016 - 66, designating certain captive insurance companies that have made the 831 (b) election as a
transaction of interest .
the attorney accomplished this feat by putting his earnings into a captive insurance company, a vehicle that allows companies to insure themselves against risks that are too expensive to buy coverage for in the regular insurance market or to cover events that are unlikely to happen but would be costly if they actually did .
( ii)... such insurance company does not meet the requirement of subclause (i) and no person who holds (directly or indirectly) an interest in such insurance company is a specified holder who holds (directly or indirectly) aggregate interests in such insurance company which constitute a percentage of the entire interests in such insurance company which is more than a de minimis percentage higher than the percentage of interests in the specified assets with respect to such insurance company held (directly or indirectly) by such specified holder .
providing the captive owner with recommendations to strengthen the overall tax position of the captive, while at the same time considering the overall risk management and business goals of the company .
a captive is an insurance company created to insure the risks of its members. companies, both large and small, have found that forming a captive allows them to better manage the cost and administration of their insurance coverage needs. the georgia captive insurance company act (the “act”), originally enacted in 1988, allows captives to obtain a license and operate in the state of georgia. in 2015, 2016 and 2017, commissioner hudgens supported and promoted legislation, which was ultimately passed by the georgia general assembly, that amended various key provisions of the act, including those regarding minimum capital and surplus requirements, confidentiality, taxation, and incorporation. in april of 2016, commissioner hudgens created a captive insurance division at the department that is solely dedicated to the licensure and regulation of captives. with the passage of georgia' s captive bills, the promulgation of georgia regulation 120 - 2 - 45, and the creation of a dedicated captive division at the department, georgia continues to ensure that its laws and regulations are consistent with best practices in the captive industry and commissioner hudgens continues to demonstrate his dedication to improving georgia as a captive domicile. so, if you’re contemplating forming a new captive, or you’re just interested in finding a new domicile for your existing captive, we at the georgia insurance department would be happy to discuss the many benefits of making georgia your new home. welcome to georgia !
consensus management corporation is an independent captive management company offering captive insurance solutions for clients nationwide. headquartered in nashville, tennessee, we ensure a
customer comes first
? attitude which assists our clients in designing a program that fits their overall objectives for the short and long term.
captive insurance is an alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself . the main purpose of doing so is to avoid using traditional commercial insurance companies , which have volatile pricing , and may not meet the specific needs of the company . by creating their own insurance company , the parent company can reduce their costs , insure difficult risks , have direct access to reinsurance markets , and increase cash flow . when a company creates a captive they are indirectly able to evaluate the risks of subsidiaries , write policies , set premiums and ultimately either return unused funds in the form of profits , or invest them for future claim payouts . captive insurance companies sometimes insure the risks of the group 's customers . this is an alternative form of risk management that is becoming a more practical and popular means through which companies can protect themselves financially while having more control over how they are insured . there are many variations of how captives can be set up , which can be broken into two categories . the first , category is known as non-sponsored in which the company is the creator and beneficiary . within that category the most common are single-parent or “ pure ” , group and association . the second category is sponsored in which the captive is owned and controlled by another company that allows other companies to “ rent ” insurance . this category includes protected cell captive insurers and rental captives . 
captive insurance is an alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself. the main purpose of doing so is to avoid using traditional commercial insurance companies, which have volatile pricing, and may not meet the specific needs of the company. by creating their own insurance company, the parent company can reduce their costs, insure difficult risks, have direct access to reinsurance markets, and increase cash flow. when a company creates a captive they are indirectly able to evaluate the risks of subsidiaries, write policies, set premiums and ultimately either return unused funds in the form of profits, or invest them for future claim payouts. captive insurance companies sometimes insure the risks of the group's customers. this is an alternative form of risk management that is becoming a more practical and popular means through which companies can protect themselves financially while having more control over how they are insured. there are many variations of how captives can be set up, which can be broken into two categories. the first, category is known as non-sponsored in which the company is the creator and beneficiary. within that category the most common are single-parent or “ pure ”, group and association. the second category is sponsored in which the captive is owned and controlled by another company that allows other companies to “ rent ” insurance. this category includes protected cell captive insurers and rental captives.
captive insurance is an alternative to self-insurance in which a parent group or groups create a licensed insurance company to provide coverage for itself. the main purpose of doing so is to avoid using traditional commercial insurance companies, which have volatile pricing, and may not meet the specific needs of the company. by creating their own insurance company, the parent company can reduce their costs, insure difficult risks, have direct access to reinsurance markets, and increase cash flow. when a company creates a captive they are indirectly able to evaluate the risks of subsidiaries, write policies, set premiums and ultimately either return unused funds in the form of profits, or invest them for future claim payouts. captive insurance companies sometimes insure the risks of the group's customers. this is an alternative form of risk management that is becoming a more practical and popular means through which companies can protect themselves financially while having more control over how they are insured. there are many variations of how captives can be set up, which can be broken into two categories. the first, category is known as non-sponsored in which the company is the creator and beneficiary. within that category the most common are single-parent or “ pure ”, group and association. the second category is sponsored in which the captive is owned and controlled by another company that allows other companies to “ rent ” insurance. this category includes protected cell captive insurers and rental captives.