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After a difficult few years in the wider US economy, greater levels of economic confidence in 2010-2011 have heralded the formation of a raft of fresh captives in the States. Parent companies are evidently considering again the attractions of captive insurance entities, whilst those with existing captive vehicles are re-examining their programmes in order to maximise their scope, return and capacity as conditions improve. 831b captives have proven popular, but larger captives have also been among the new formations, with two-thirds of domiciles recording growth in 2010 and a similar number expecting further positive growth in 2011. For some parents, they may hope to get the drop on the inevitable hard market when it eventually appears, and it seems that despite soft market conditions in the commercial arena, interest in captives as invaluable risk-bearing entities continues to rise. Addressing the growth of interest in captive vehicles, Accelerating growth examines the successes achieved by a range of US domiciles, from established heavy-weights such as Vermont, to up-and-coming domiciles such as Montana, and the latest addition to the captive offering, New Jersey. Meanwhile, with changes afoot in the provision and assessment of healthcare, accurate and timely analytical data has become an increasingly important component of any healthcare captive’s capabilities, just how much, is addressed in Cost of risk: show me the money. Change is also threatening in the regulatory arena, with the ripples from Europe’s Solvency II initiative and their potential impact on US captives examined in A tempest in a teacup? Technical insights into those key questions that need to be addressed in a captive feasibility study are examined by Towers Watson in Five questions: unpacking your feasibility study. While Wells Fargo outlines how to get the green light from your carrier when looking to establish a collateral trust in Collateral trusts: unlocking approval. In this year’s domicile-specific pieces, we have insights from Vermont, Missouri, South Carolina and offshore domicile, Nevis, with all three jurisdictions outlining the strength and evolution of their offering. Finally, the domicile articles are accompanied by our captive domicile run-down, which provides an invaluable snap-shot of the leading American jurisdictions, addressing their regulatory environment, captive tax rates, and new and existing formations and industries serviced. It would seem that there is much to cheer this year, and with recent captive events well attended and received, further positive growth appears likely as the US captive industry gets back into the groove. View the complete digital edition online |
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