French regulator publishes captive guide

The Autorité de Contrôle Prudentiel et de Résolution (ACPR or the French Prudential Supervision and Resolution Authority) has published a guide to captive insurance.

The authority said in a statement that as part of their risk management strategy, industrial, commercial or service companies or groups of companies have various tools at their disposal, including the creation of a reinsurance captive to optimise it. As a result the ACPR is increasingly being approached by companies or groups wishing to apply for approval of reinsurance captives and that to date, 17 of them have already been approved by the Authority. 

As a result, in order to facilitate the preparation of these projects, the ACPR has published a guide that will allow companies  to recall the main regulatory and prudential principles to be respected in order to obtain approval as well as good practices in this area, for captives newly created in France or existing ones that are subject to a transfer of head office to France from the European Economic Area.

The guide provides concrete details on the information expected in the application files for approval of captive reinsurance companies. Its objective is to give the companies concerned more visibility as to the points of attention of the ACPR, and to facilitate the processing of their applications for approval as soon as possible.

For more information contact the ACPR or click here.