captive insurance and alternative risk domiciles

Featured Domiciles:

US:

Also see November 19th press release -- Major foodservice industry player sets up captive insurance company in Missouri.

John Rehagen tells us that as of November 19, 2009, 5 captives are licensed in Missouri. There are currently 2 more in the pipeline, and an additional likely application coming in before year end, with 2 more probable applications likely in the 1st quarter of 2010. Premiums are on course to reach approximately $1B by year-end. Very impressive.

Missouri is on the move with captives for life securitization as well as pure and association captives. A couple have redomiciled to Missouri from offshore jurisdictions as well. We are delighted to showcase them as the current featured US Domicile.

Non-US:

British Virgin Islands -- NEW legislation and regs in place on 1 February 2010!

Derek Lloyd , Insurance Manager at AMS Insurance Management Services Limited and Chairman of the BVI Association of Insurance Managers (BVIAIM) has filled us in on the new legislation and regs governing insurance entities, including captives. Derek comments, “After an extended period of anticipation for the enactment of the new insurance legislation, the industry is generally pleased to now have this in place from the 1st February 2010. The legislation addresses a number of historical anomalies that have existed since the original legislation was put in place back in 1994-95 and provides a clear understanding for industry practitioners and clients alike, as circumstances have undoubtedly changed for the different types of licensed insurance entity in the intervening period. At the same time, corporate governance standards have significantly increased around the world, particularly against the backdrop of events in the global economy in the last couple of years and the new legislation will allow the BVI to move forward as a credible, sustainable captive domicile”

Direct links follow, and will be maintained long term in the Non-US Domicile Fast Links section on this page.

Other Valuable Domicile Resources:

July 27, 2010: "An Open Letter to Sen. Carl Levin" from Anthony Travers, O.B.E., Chairman, Cayman Finance.

"...Your Support for the group callling itself 'Business and Investors Against Tax Haven Abuse' necessitates this response. Your endorsement of that organization's recent report well might lend credibility to statements that are in error and recommendations that are misguided..." [Download full letter]

Mancini's Musings: This is a concise, well-written explanation of free-market principles surrounding taxation of multi-national corporations that should be required reading for every American -- especially the elites in government, media, and education. This was reported in Politico, but I have not seen it reported in any other media outlet. Your comments would be most welcome. Should you choose to comment, please be sure to let me know if you would like your opinion published. E-mail Chris Mancini.

May 15, 2010, Updated Version: Freedom in Captivity. This well-written white paper was written by Jan Dash and Herman Liburd from the law firm of Liburd and Dash. A portion of the paper is specific to the captive domicile, Nevis, but the vast majority of it comprises a cohesive "Captives 101" summary, which is always in high demand at captive.com.

May 10, 2010: The NzCIA's Peter Lowe was asked to present an overview of the New Zealand Captive Insurance Industry to the IFSD Committee. The IFSD Committee is the Prime Minister of New Zealand's Task Force to review the opportunities for New Zealand with the creation of a Financial Service Hub. Follow this link to the NzCIA website's news page to download this presentation and view other articles of captive insurance interest.

March/April 2010: Key Themes from the 2009 Cayman Captive forum -- Captive Insurance in the Cayman Islands: Stability in a world of uncertainty. In continued support of the successful Cayman Captive Forum, this successful event's main sponsor, -- KPMG -- has kindly provided a highlights brochure covering the key themes of the 2009 conference. The publication provides an overview of key topics for all to read and for those who attended, a useful reminder of the discussions and educational topics that took place. Should anyone require a hardcopy of the brochure, please e-mail Dara Keogh at KPMG darakeogh@kpmg.ky.

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]

14 October 09: Briefing Note -- UK consults on Protected Cell Companies…..12 years after Guernsey led the way

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.

M arch 18, 2009: Montana Legislature Passes Industry-Backed Captive Law.

March 6, 2009: Cayman Islands Regulatory Announcements. Our thanks to Kerr, Russell & Weber for sharing this important update with captive.com's readers.

February 2009, download current list of Kentucky captives as of January 2009 in pdf. As of the date of this document, there were 77 licensed captives -- mostly pure -- in the domicile.

Like many domiciles, Kentucky is experiencing budget constraints state wide. Despite this, our sources report that, "Commissioner Clark and other government officials are committed to supporting the captive industry in Kentucky. We recently have allocated funds for increased staff and IT resources for the captive program, although some cuts to marketing, travel and other discretionary expenditures were necessary. The captive program is adequately funded to support our current companies and to handle foreseeable future growth in the next few years."

Great news for Kentucky and for our industry.

October 2, 2008: Captives: Why the Isle of Man?

July 16, 2008: The DCIA Interviews Delaware Captive Insurance Regulator William P. White, ARe. Fast links to important Delaware info are provided in this Question and Answer article!

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.

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."

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...]

April 26, 2007 Guernsey Update: Guernsey – A Buoyant Captive Domicile On PCC’s Tenth Birthday.

From Best Review Monthly Insurance Magazine, March 2007: Captive Island. Puerto Rico's long-time plan to become a haven for captive insurance companies is becoming a reality. This domicile is open for business! Copyright© 2007 A.M. Best, reprinted with permission. All rights reserved.

Malta Update: March 2007 Compliance Bulletin.

Regulatory News: Mississippi House Bill 984 on Registration Fee for Risk Retention Groups. This house bill was sent to us by the good folks in Mississippi in the aftermath of a March 27 Captive Daily Wire Posting on RRG fees that was unclear as to which state was involved.

A terrific article written by Conor Jennings entitled, "Virgin Captives" is awaiting you. This article features a solid introduction to captive basics, along with an explanation of numerous advantages offered to captives who domicile in the British Virgin Islands. Posted in November 2004.

Protected Cell Captives in Malta -- Insurance Companies, Insurance Brokers & Insurance Managers

Captive Governance 101 -- a presentation and supporting articles delivered at the Cayman 2003 Captive Forum by Monte Jahnke and a panel of experts, featuring governance issues for multiple domiciles, but with an emphasis on the Cayman Islands.