US most popular destination for captives

International

A report by broker Marsh suggests that the US (when taking into account all the states that host captive insurance companies) is marginally more popular as a domicile for captive insurers than Bermuda. Some 30% of all captive companies are domiciled in the US. However, Bermuda remains the single most favourite domicile for captives, accounting for 29.0% of the total. In Europe, Guernsey continues to have the largest number of captives. In terms of the kinds of corporations that use captives, the Marsh report indicates that financial institutions account for 20% of all captives, with healthcare companies owning 11% and manufacturers 10%. Captives are used for a variety of risks, with 20% of business underwritten for property damage, 18% for general or third party liability and 12% employers’ liability and workers’ compensation. The report also points out that globally, almost 60% of captives do not use reinsurance.