Successful first year for French captive regime, but market eyeing further regulatory progress

• French regulator improving understanding of regulating captives
• Licensing timeline can stretch beyond six months after application
• PCCs and extension of equalisation provision for employee benefits under consideration
• A greater local captive ecosystem will reduce the need to outsource
• Exodus of French re-domestications from Luxembourg unlikely in large numbers

France’s first year as a captive domicile has been hailed a success, but a stronger local ecosystem and continued education will be key if the jurisdiction wants to build on its early achievements.

Captive Intelligence reported in June last year that the French government had confirmed details of the equalisation provision made available to reinsurance captives, and the first two new captive entities were licensed shortly after the publication of the decree.