Various US states, including Vermont, do already licence captive insurance firms which are set up to deal with a parent company’s insurance needs.
The legislation signed into law by governor John Kasich allows Ohio companies to operate their own locally based commercial insurance subsidiaries.
Over 90% of all captive businesses are located in three regions covering the Caribbean (Burmuda, Cayman and Barbabos); the US (Vermont, South Carolina, and others), and Europe (Dublin, Guernsey, Isle of Man and Luxembourg).
Companies located in the US gravitate to onshore US and Caribbean domiciles while European domiciles are convenient for the United Kingdom, Europe and South Africa.
The Isle of Man Captive Association, for example, says in its mission statement that insurance industry contributes to the Island’s financial services sector in many ways including the presence of 150 insurers with more than 100 people employed directly in the captive life industry.
Guernsey, meanwhile, has more captives domiciled on its island than any other jurisdiction in Europe. To read more click here.
