Long reads

North Carolina’s flexible legislation and experienced regulatory team are two of the main drivers behind the jurisdiction’s steep climb to become one of the fastest growing domiciles in the United States over the past ten years.

Potential cost savings and improved benefits plans for employees are the two biggest drivers behind the growing trend of companies utilising captives to reinsure international employee benefits programmes.

While the commercial insurance market is beginning to soften for businesses in the legalised cannabis sector, captives continue to provide a popular option for risks that remain challenging such as liability and property.

Malta’s protected cell legislation, flexible legislation and experienced regulator are the main attributes to the jurisdiction’s appeal as a European captive domicile.

Environmental liability is among several liability lines where captives are particularly well positioned to provide parent companies with a strong alternative to the traditional insurance market.

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.