The process of setting up a captive can be tedious, problematic and stressful. Big data, domicile location, reinsurance markets and actuary selection continue to remain at the forefront of any prospective captive owner’s mind.
Being up-to-date with every associated legal implication is also key. Forming a captive encompasses five different legal practice areas and each must be adequately adhered to, while the consequences of failing to meet the requirements could spell ruin for the captive.
Opportunities still lay in abundance, however. Accounting for roughly $450bn of capital, the global reinsurance market is often overlooked, but, if utilised correctly, can present the parent(s) with a plethora of capacity options not usually available to them.
When choosing a domicile, there are a number of essential considerations. Domiciles can be selected solely on the fee and premium tax environment, while some owners may be swayed by an exotic location. Prospective captive owners must stay wary, carry out a thorough review and ensure high quality regulation is a major part of their decision.
This Captive Review Start-up Report 2016 delivers a comprehensive guide containing a wealth of information collated from established experts. The report sheds light on the formation of protected cell companies (PCCs), group and association captives, while highlighting the pitfalls which have seen many captives crumble.