Regulation and Oversight
New Federal Report Examines Possible Micro-Captive Role in Tax Abuse
So-called "micro-captives" have been in the crosshairs of the Internal Revenue Service for several years. Now, a newly released report from the US Government Accountability Office warns that offshore micro-captives may be used for abusive tax schemes. Read More
Liability Management Firm Gets PCC License in Malta
Liability management company Gossmann & Cie. has been licensed to operate a protected cell company (PCC) in Malta. The PCC is fully operational and able to create customized cell-based solutions as well as manage the relevant insurance portfolios transferred to Gossmann & Cie., the company said. Read More
Micro-Captives Missing from this Year's IRS "Dirty Dozen" List
Micro-captives are not included in this year's Internal Revenue Service (IRS) "Dirty Dozen" list of "tax scams," though an IRS statement suggests the agency will continue monitoring the small captive insurance companies. It is the first time in 5 years that the IRS did not include micro-captives on its annual list. Read More
Regulators Expect COVID-19 To Prompt Pandemic Coverages in Captives
Captive insurance companies may serve as valuable tools for many organizations addressing pandemic-related risks in the wake of COVID-19, but regulators will closely scrutinize captives' pandemic coverage plans. Policy language, triggering events, coverage details, and reinsurance will be key considerations. Read More
NAIC Report Details State Insurance Regulatory Response to COVID-19
The National Association of Insurance Commissioners (NAIC) has released its first update on the state insurance regulatory response to COVID-19, noting the pandemic's impact on the NAIC's 2020 regulatory and operational priorities. The report says that state insurance regulators and the NAIC have been closely monitoring insurers' financial health. Read More