Long reads

Singapore is experiencing “significant captive growth” from Asian parented companies, as the region sees an uptick in captive formations.

Parametric products are the “perfect fit” for a captive due to their direct access to internal company data, while the policy’s automatic pay-out function also lends well to captive utilisation.

Regulators and lawmakers in cell captive jurisdictions around the world should be monitoring the fallout from the Vesttoo collateral scandal concerning White Rock cells in Bermuda.

The use of captives by companies based in Latin America is increasing, but a significant gap remains between the number of large corporates using captives compared to the number of medium and smaller businesses utilising them.

Vermont is not resting on its laurels having recently taken top spot for number of active captives, with a focus on “quality over quantity” and a continued recruitment drive both within the regulator and across the local industry.

Guernsey’s drive to pioneer innovative captive legislation and its history of captive success have helped it take the crown as Europe’s largest, and fastest growing domicile in recent years.

Captive formation activity has been slow going for airlines, with large, established carriers benefitting from long-term utilisation but entry to market presenting significant obstacles. There are signs, however, that new formations could be around the corner.

The current environment for property risk has created the “perfect storm” for writing the line through captive insurance companies, although important questions concerning collateral, retentions and long term strategy need to be considered for insureds.