The key stages of a captive was the focus of a break-out discussion during the Bermuda Captive Conference with the audience told that a mature captive could almost act like a commercial insurer. Parent companies can generate profits from additional premium by underwriting third-party risks in their more mature captives.
Bermuda was one of only two jurisdictions to respond to inquiries from students to set up their own captive, the Bermuda Captive Conference heard yesterday.
This year’s Bermuda Captive Conference has an increased focus on engaging young professionals looking to transition into the insurance industry, particularly captives, as part of its community outreach programme.
Against a backdrop of more US captive domiciles gaining prominence and maturing, companies may opt to keep their captives onshore. The Bermuda captive community will therefore need to focus on continuous improvement and take the necessary steps to retain existing captives and attract new captives that are fit for what Bermuda offers.
With the hardening of the commercial insurance market for many lines of business, captives are being used more for either increasing retentions or new lines that were traditionally placed in the commercial market when it was softer.
Bermuda’s insurers - and by extension captive insurers - have until July 1 to meet the government’s new economic substance requirements, although much of the industry is confident captives are in a good position to satisfy these requirements and that the impact of the legislation will be minor.
The UK’s HM Revenue and Customs is undertaking a call for evidence to better understand how the administration and collection of Insurance Premium Tax (IPT) can be made more efficient for both business and HMRC. It also wants to identify unfair tax outcomes so these can be addressed.
Roundstone, a US provider of self-funded group captive health insurance, recently distributed over $5m to US business owners currently enrolled in one of its group medical captives.
Captives can help employers attract and retain staff in an increasingly competitive market for talent, according to a Maxis Global Benefits Network report.
Fairtide Insurance, Iboba Insurance, Pitts Bay Insurance Company and Trimark Insurance have been admitted to Bermuda's Captive Hall of Fame.