Captive Review May Edition

Counting captives is not a straightforward task, but I believe Captive Review has again delivered the most accurate snapshot of the global industry.

It is the first time our annual World Domicile Update, in partnership with Wilmington Trust, has reported a net decrease in the total number of active captives and it is unlikely such a drop has occurred since the captive insurance concept took off in the 1970s and 1980s. The decrease is not major, however, and we highlight a number of trends and circumstances that has prompted the slight decline in our analysis beginning on page 27.

There were 6,482 active captives as of 31 December 2017 compared to 6,618 at the end of 2016. We included more jurisdictions than ever before in our report, although those unable to submit data in time included St Lucia, Norway and Denmark.

The data on individual cells and series remains inconsistent between jurisdictions and, as such, we kept them out of the total figures. We have, however, laid out cell numbers domicile by domicile when they are provided, and included them in the total count of risk-bearing entities (RBEs) in the regional breakdowns.

I would like to thank all the jurisdictions and associations who have cooperated with our research and data requests since the turn of the year, as well as a number of consultants and service providers who continue to point us in the right direction as and when we hit a brick wall.

This annual statistical update should serve industry well in identifying broader trends between and within the major captive markets outside of companies’ own activity. Despite the total number of captives decreasing during 2017, the spread of new formations shows the captive concept remains attractive to a wide range of company types and sizes.

In one of our industry comment pieces, Robert Walling, of Pinnacle Actuarial Resources, has provided a timely discussion on whether captive service providers should be more closely regulated (page 20-21). It is a topic raised with me before – by regulators and experienced captive managers – as captives become more sophisticated, face greater scrutiny and look to improve their own governance.

Walling has collected feedback from regulators across the US and I believe it is a good starting point for a wider discussion. As ever, if you have any questions or comments regarding the World Domicile Update please do not hesitate to contact me.

8 August 2022
8 November 2022
9-10 November 2022

Kranz move to Alliant in a show of captive commitment

Pete Kranz, recently departed Brown & Brown's formerly known Beecher Carlson captive management team as their Executive Managing...
MORE

Captive insurers have key role in helping corporate parents meet ESG goals

Talking on the latest Airmic Talks ESG podcast, Ciarán Healy, Aon Captive & Insurance Managers’ director of client solutions (EMEA), highlighted how captive insurers can provide vital support...
MORE

Alberta captive insurance laws enter effect

The Canadian province of Alberta has put into effect two pieces of legislation – the Captive Insurance Companies Act and the Captive Insurance Companies Regulation – creating the...
MORE

Alex Murray appointed to SCCIA board

Alex Murray, a principal at consultants Johnson Lambert, has been appointed to the South Carolina Captive Insurance Association’s (SCCIA) 2022 board of directors. Murray has a background in...
MORE