Captive insurance companies play a valuable role helping many entities structure and manage risk, but as the business landscape changes over time, there may come a point when the owner decides that it no longer needs or wants all or part of the captive, as RiverStone’s Matt Kunish explains.
Cayman offers a number of advantages as a captive insurance domicile, including tax neutrality, which is an important element that eliminates double taxation risk and contributes to the efficiency of time and resources spent on global tax compliance, says Jude Scott of Cayman Finance.
After a decade of mostly uninterrupted GDP growth across G10 economies—with the notable exception of Japan and several European economies—investors are beginning to pause after lacklustre manufacturing data has heightened concerns that many economies may fall into recession, says Zafrin Nurmohamed of Butterfield Bank (Cayman).
The future is looking bright for Cayman’s captive insurance sector, with 2019 delivering another year of solid growth in terms of premiums written and assets held. The Island is also diversifying into new areas of the insurance industry, boosted by its decision not to pursue Solvency II equivalence, says Adrian Lynch of the Insurance Managers Association of Cayman.
The Cayman Islands is well positioned to lead the development of the growing captive, insurance-linked securities and reinsurance industries and maintain its position as a reputable, responsible and world-class international re/insurance hub, says Cindy Scotland, managing director of the Cayman Islands Monetary Authority.
Many jurisdictions around the world are competing to host your captive. Choosing the right domicile ensures the optimum tax and regulatory treatment, and that the right service providers are on hand, say Lori Holford and Tania Davies of Atlas Insurance Management.
Certain captives fail, but what goes wrong? And what can be done about it? Stephanie Mocatta, chief executive officer of SOBC DARAG, has some suggestions.
The demand for insurance talent is growing, which is especially true for the captive insurance industry. With baby- boomers retiring, generation X aging and millennials switching off at the mention of insurance - , where is the talent going to come from? Kathleen O’Neil Larkin, attorney and instructor at Missouri State University, says the gap between industry and academia must be bridged.
An enterprise risk management micro-captive programme may not be as robust as a mega-company's ERM programme, but many of the same benefits may be achieved. Ryan Ralston, director of risk management at Elevate Captives, has the details.
Just 10 days before the scheduled trial in the US Tax Court, the taxpayers conceded the remaining issues in Pilot Series of Fortress Insurance et al v Commissioner. The pretrial pleadings highlighted many of the key questions that remain open in litigation over the tax treatment of captive insurance transactions. Those questions—and the parties’ efforts to answer them—provide a roadmap of what to expect as additional cases move toward trial. Jenny Johnson Ware, founding partner of tax litigation boutique Johnson Moore, analyses those key questions and what we can learn from them—despite the fact that the Tax Court will not be providing any answers.