From: Captive International
An increasing number of US jurisdictions are either creating captives legislation or overhauling current laws to stay up to date with trends and become relevant, Adam Miholic of Hylant Global Captive Solutions explains.
Selecting a domicile is a crucial component of any captive evaluation process. The number of state- and country-based jurisdictions with active captive insurance legislation available has grown steadily since the first captive formations in the late 1960s.
In addition to the sheer number of domiciles multiplying, the most progressive active domiciles routinely update the captive legislation to ensure they are meeting the current trends and needs of current and prospective captive owners.
it is essential for all current and prospective captive owners and their advisors to thoroughly vet all available captive domicile options.”Adam Miholic, Hylant Global Captive Solutions
While there is a myriad of qualifying characteristics that any domicile must meet for a captive owner to establish in a jurisdiction, most look at the financial, strategic, and operational aspects of the given location.
Island captive jurisdictions reigned supreme
Offshore domiciles such as the Cayman Islands and Bermuda were the leading jurisdictions fostering captive insurance company formations for US-based companies in the early years of captive formations. Their flexible legislations, options for various captive licences and structures and geographical locations for companies with international operations made offshore domiciles immediate front-runners as a domicile option.