AMRAE, the French risk and insurance management association, is creating a captives federation.
The French Federation of Company Captives is to “bring the interests of these companies into the public debate and support projects for the creation and deployment of captives in France”, the association said.
“Faced with the emergence of multiple exceptional and systemic risks, in a context where the insurance market no longer meets the needs of companies, whatever their size, AMRAE reaffirms the major interest of re/captives assurance in the organisation of the resilience of companies and, consequently, of the French economic fabric,” it explained in a statement.
In 2021, AMRAE identified more than 50 French companies with plans to create captives, several of which it says have recently requested approval from European regulators to domiciliate them outside France. Earlier this year, the Ministry of Economy was reportedly ready to introduce a new tax and regulatory framework in the 2022 annual Financial Act to facilitate mid-cap and large firms creating or relocating captives in France.
AMRAE said it deeply regretted the absence of the provisions in the bill “and the scheduling considerations which seem to be the cause”.
Despite this, the association welcomed “the quality of the dialogue” with the public authorities and progress made on the issue.
It concludes: “AMRAE remains confident on the favourable outcome of the notification, made by the government to the European authorities, of the French draft measure in favour of this device. Considering the associated challenges in terms of economic sovereignty, AMRAE has no doubts about the will to make it succeed within the framework of the next Finance Law.”
AMRAE, France, risk management, insurance, reinsurance, captives, federation, French Federation of Company Captives, Europe