Long reads

Despite the Internal Revenue Service making some concessions in its long-awaited final version of 831(b) regulations, particularly in relation to loss ratio thresholds, industry commentators believe it continues to target micro captives unfairly, with one legal challenge already filed.

2024 was another success for the European captive market, which saw captives continue to blossom, with this trend expected to continue into 2025 and beyond.

Virtual captives continue to be utilised by a number of companies as an alternative option to more traditional captive structures.

The implementation of IFRS 17, particularly in certain jurisdictions, has had significant implications on the way insurance contracts are valued with some commentators suggesting it is stifling experimentation and innovation. 

The captive market may only get one shot at designing an optimal regulatory regime in the United Kingdom, so how it responds on a series of key questions is likely to determine its impact on the wider industry.

Although there are signs that property pricing is softening in the commercial market, the line is still one of the main drivers behind growing captive utilisation around the world.

Despite indications of a softening global insurance market, captives are expected to continue to be a popular tool for those companies looking for substitutes for the traditional insurance market.

Although Hawaii has not added the same headline number of new captives in recent years compared to some other US domiciles, its existing portfolio continues to increase in sophistication and premium volume.