How many captive insurance companies are too many?
Is the captive insurance industry growing too fast?
Some self-proclaimed experts are wringing their hands due to the growth of the captive industry.
The State of Delaware recently trumpeted the news that it has become the sixth largest captive insurance company (CIC) domicile in the world and the third largest captive domicile in the U.S. Delaware’s announcement is significant because it highlights the “domicile war” currently underway. The “domicile war” is great news for small and medium size business owners
Much has been made of the IRS’s recent interest in captive insurance companies (CICs) with some commentators suggesting that the service is engaging in an “audit sweep” of captives.
Whether there is such a sweep is still up in the air, but even if there is, it should be noted that such sweeps are not unusual. And, clients
Insurance giant, Marsh, recently released a benchmarking report which outlines trends in the U.S. captive insurance industry. The most surprising finding is that “only one-third of US captive owners treat their captives as insurance companies for US federal income tax purposes.” CAPTIVE INSURANCE TIMES recently covered the report in an article titled “Marsh Charts Captive Evolution” written by Stephen Durham on April 30, 2014. According to Mr. Durham, “The finding suggests that captives are being used more as a tool to generate operational and risk management value rather than for their tax efficiencies.”