KEVIN POOLE
+1 345 914 2265
kevin.poole@artexrisk.ky
artexrisk.ky
CAPTIVE INSIGHT
Captive insurance companies and insurance management firms have been
around since the 1960’s and began life offshore primarily because of the
onshore regulatory burden and the cost of operating domestically in the US.
Cayman’s entry into the market occurred in the 1970’s after identifying a gap
in the market and taking the innovative step of permitting medical malpractice
captives to be established, the rest as they say is history as Cayman continues
to be the pre-eminent health care domicile and has since expanded to include
many other types of captives including single parent captives, groups, cell
companies and also 3rd party writers.
Captive regulations did not exist at the outset of the industry and therefore
regulations have had to play catch up to the growing captive market as they
sought to introduce best practices while trying to ensure their domicile remained
competitive. Onshore captives started with Vermont who established laws
allowing insurance captives from the early 1980’s, but it was not until the late
1990’s that the state began promoting itself as an alternative to traditional
offshore insurance arrangements and there are now close to 30 US states
with some type of captive legislation.
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