From: Captive.com/IRMI
Traditionally, a standard metric for measuring a captive insurance domicile’s success has been the total number of captive insurers registered, but many have argued that this isn’t the most accurate way of doing so.
They say there are a host of factors that need to be considered when measuring a captive domicile’s success.
“There are a number of quantitative ways to measure the success of a captive domicile, including number of captives licensed, number of active captives, total gross and net premium volume, and total assets, to name a few,” said Mike Meehan, principal at Milliman. “Each of these quantitative metrics has some merit.
“Considering the entire portfolio of a domicile, such as business type, captive type (single-parent versus group), and the risks being insured by the captives may also provide some meaningful insight,” Mr. Meehan continued. “Other considerations such as year-over-year growth, closures, insolvencies, and domestications both in and out of the domicile can also be helpful in measuring the success of a domicile.”
