From: Captive Insurance Times
Dan Towle, president of CICA, provides an update on how this year has been for the association and, in a market full of challenges, calls for the industry to keep the momentum going
How strong do you think the captive market is currently?
The reports I hear from the domiciles are that formation activity continues to be solid. This has been consistent for some time considering the overall market has been quite soft. I believe this speaks volumes about the validity of captives being formed for long term-risk management benefits, not short-term benefits driven by a hard market. Formation activity is a good indicator of overall strength of the captive marketplace. With that said, there are always threats to our industry.
Some segments of the captive population are more vulnerable than others. The small captive space is an area that is under scrutiny by the Internal Revenue Service (IRS) and continues to find itself on the IRS’ Dirty Dozen list.