The cyber page Captive Review one of the global leaders in captive insurance information, has published an interesting article on the most important issues of the year. To do so, it has chosen the 10 trends most followed by its readers and this is the result.

Captive Insurance: trends

10. How to manage international data?
One of the challenges for multinational companies with a captive insurance company is how to collect and manage data from the different countries in which they operate.

9. The province of Alberta, Canada, attracts captive insurers
Along with British Columbia, now Alberta is the second Canadian province with specific legislation for captive insurers. It remains to be seen whether it will affect Barbados which, until now, has been the preferred destination for Canadian captives.

8. Cybersecurity: a prime area for the insurance industry
Although ransomware attacks have increased, prices have stabilized in Europe and Asia, as well as trending downward in North America. Cyber risk continues to evolve and will remain a major issue in the coming years.

7. European competition
The new French legislation aims to attract captive insurers, which has sparked competition on the continent. London is one of the world’s insurance hubs and could become an attractive location for captives.

6. Vermont is Number 1
The small state of Vermont (USA) has become a giant after overtaking Bermuda as the world’s largest domicile for captive insurers.

Captive insurers: highlights of 2023

5. Bermuda and its corporate income tax
The Government of Bermuda signed up to the OECD’s Pillar II initiative for the implementation of global minimum tax standards. This highlighted the need to clarify how any new tax would apply to Bermuda-based captives.

4. Slowdown in the growth of captives
The captive growth curve may have reached its peak, as Marsh’s Michael Serricchio warned. Key markets such as the US and Europe are losing some momentum.

3. Strategic Risk Solutions (SRS)
Under the leadership of Brady Young, SRS has continued to grow against phenomenal rivals such as Marsh, Aon, WTW and Artex (Gallager). The market will closely follow SRS’s major projects for 2024.

2. The Vesttoo scandal
The industry company was embroiled in a scandal over the issuance of allegedly false warranties. It is hard to understand how this has happened in such a regulated sector. One of the results has been a series of lawsuits. Fortunately, the captives have not been affected by the scandal.

1. U.S. Tax Agency goes after microcaptive
This was the hot topic for readers and has led to the closure of a number of microcaptive operations in Delaware and elsewhere in the United States. The industry has emphasized its commitment to defend micro-captives against what it sees as a threat from the IRS (Internal Revenue Service).