Long reads

Recent lawsuits concerning voluntary employee benefits plans in the United States should prompt employers to rethink how benefits are structured and captives can play a central role by providing better cost management, alignment and transparency.

Life Time is a chain of health clubs in the United States and Canada with more than two million members, operating in around 200 locations.

Under SB 890, the MIA, in consultation with relevant stakeholders, must study the use, regulation, and taxation of captives by entities in the State. 

While softer pricing has traditionally reduced the incentive to retain risk within a captive, the current cyber market is not triggering a widespread retreat from captive utilisation. 

Some commentators speaking to Captive Intelligence argue that the latest ruling is one of the biggest wins for the captive industry in recent years, while others believe the ruling may not ultimately change much in practical terms.

Organisations are increasingly turning to captives, not simply as risk financing tools, but as strategic platforms to optimise capital, manage volatility and unlock greater capacity. 

With 36 US captive domiciles now available to choose from, it makes growing sense for firms to explore what their home domicile might have to offer.

China’s fast growing and maturing multinationals could present the next boom in captive growth with Hong Kong well positioned to capitalise, according to Yves Betz, head of AXA XL Multinational Solutions.