Captive Insurance – Taking The Plunge

Domiciles and captive managers are wise to explore the business potential emerging from frontier markets such as Asia and Latin America, says Guernsey Finance's Fiona Le Poidevin.

This year's Marsh captive benchmarking report highlighted that the most common form of new formations in the US are from midsize companies establishing small captives writing $1.2bn in premium or less.

Indeed, in recent issues of Captive Review there has been an increased focus on 'micro-captives' and in particular, Ross Elliot, captive director at the Utah Insurance Department (UID), was quoted as saying that around 85% of its licensed entities are micro-captives. These examples highlight the maturity of the captive insurance market in the US and it is a similar picture on the other side of the Atlantic in Europe.