Captive insurance companies have played an integral role in bringing ERM to the middle market, and enterprise risk captives have been hotbeds of innovation, finding new ways to price unusual risks, says Andrew Rennick of Womble Bond Dickinson.
There has been an aggressive shift in the approach of certain US states to the collection of self-procurement taxes. What implications does this have for the industry? And will there be more redomestications to the ‘home’ state? US Captive investigates.
As commercial insurance rates start to harden, more sophisticated owners of captives are starting to leverage them to avoid rate hikes by using analytics or looking to access the reinsurance markets directly. US Captive reports.
The Syzygy opinion marks the third significant microcaptive loss in the US Tax Court, and prominent captive managers have come under fire for allegedly designing and selling sham 831(b) captives. What does this mean for their future? US Captive investigates.
Careful planning can help reduce the risk of exposure to premium taxes outside a captive’s domicile, says Joseph Holahan of Morris, Manning and Martin.
Fewer captives are being formed but they are more sophisticated and being created for the right reasons. Add to this a greater emphasis on risk management and talent and the industry looks in good health for the long term, says Daniel Towle of the Captive Insurance Companies Association.
The FSAB’s ASU 2016-01 is now in effect. This will have a significant impact on the way any company, including most captive insurance companies, which maintains its accounting records in accordance with GAAP, will be required to comply, says Leon Rives of Rives and Associates.
Syzygy Insurance v Commissioner may paint a negative picture of the industry, but also provides some helpful guidance on how to structure small captives, says David Kirkup, chief operating officer at Captive Alternatives.
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.
The failure of a captive can often be traced to a breakdown in quality corporate governance. Ben Whitehouse, senior counsel at Butler Snow, outlines the important attributes of good captive governance.