Micro captives to increase in Puerto Rico later in the year: CapAlt
David Kirkup, chief operations officer and chief financial officer of Captive Alternatives, believes that the company’s six figure software investments will contribute to the significant growth of micro captives in Puerto Rico, expected in the fourth quarter of 2016.
Between five to ten years ago captives were not very common in Puerto Rico, Kirkup explains, and that it was thanks to the work of the International Insurance Center of Puerto Rico that the numbers have grown significantly.
Kirkup said: “We have developed some excellent channel partnerships including major banks and state medical associations - all highly reputable partners who can help us explain captives to business owners.
“The work that the International Insurance Center of Puerto Rico has done on international insurance legislation has been based on a study of best in the world captive law.
“CapAlt has moved all our micro captives to Puerto Rico, we intend to domicile all our new captives there, and expect to write much larger and more complex captives – as we have no size or ownership restrictions on our structure.”
However, Kirkup also claims that the increase in Puerto Rican captives means that they will end up challenging traditional domiciles.
Kirkup added: “Offshore domiciles will find it increasingly challenging to stay attractive under negative press and antiquated company formation processes. US domiciles don’t offer an alternative to traditional 831b structures.”