The America middle-market has benefited from the plethora of
captive solutions available to them including cell companies, the
831(b) tax election, and group and association captives. We asked
two leading practitioners in Europe to debate the issues.
Are European companies missing a trick by ignoring the
group captive solution?
Paul Eaton, New Business Director, Artex Risk
Solutions: YES.
Group captives have been an important tool for the
North American market for many years, but have not yet
come of age in the European market and the question is
why and whether now is the right time for the captive
management fraternity to be promoting this product?
Group captives operate on the basis that once the entity
has been formed by the founder members, new members
are introduced as possible suitors by
traditional distribution mechanisms,
largely intermediaries, and once new members are
accepted, the captive grows over time.
